Removing FA - Restating Accounts
I have to remove a building from a new client's accounts as it is not a company asset (checked with land registry over ownership and with prev a/c). It has been depreciated and there since (a sloppily done) incorporation.
If I simply journal it out and balance to DLA which works I am left with a small amount owing to directors on DCA which I will have to account for under S455 CA 2010.
I also occured to me though that if I were to correctly restore the accounts to be as if it had never been there I would need to add back all depreciation to the P&L which would leave me with a large loan to the directors. and a large S455 bill.
If the accounts had been done properly they would have declared dividends to cover in earlier years and my first suggestion appears to leave it open for HMRC to come in and ask what the money taken out in the past represents and how was it taxed as no divends were decared or reported on SA.