I'm a bit unclear regarding the note to accounts that states "operating profit is after charging"....blah blah
the item "directors renumeration"....is this simply gross salary............should it be the same figure that appears in the p/l as salary?..or is it showing what expenses were paid to the director (even if they were expenses paid for business by the director)?
any clarification greatly appreciated
many thanks
John
Replies (4)
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BIKs and Pension
Yep, that's correct Adam, emoluments is total of gross salary, BIKs and employers pension contribution.
emoluments?
Thanks Adam and Paul. I would have forgotten the employer's pension contributions.
At the risk...
..of being shot down by Euan, who (judging by his other postings) has clearly been waking up on the wrong side of his bed this week, directors' emoluments also includes pension contributions made by the employer on their behalf.
Unlike Euan, I can't be bothered knowing the source of everything but that's what I was taught in the dim and distant and that's what my disclosure checklist still says, so hope I'm right!
RTFM
Disclosure requirements for company accounts are in two places - CA 1985 and the FRSSE, assuming you are dealing with a small company - why don't you read them? This requirement is set out in the Companies Act.
CA 1985 Sch.6 "Disclosure of Information: Emoluments and other benefits of directors" 1(3)(a) states that "emoluments" of directors includes salary, fees and bonuses, sums paid by way of expenses allowance (so far as they are chargeable to UK income tax) ... and the estimated money value of any other benefits received by him otherwise than in cash. The requirement to disclose emoluments is set out in Sch.6 1(1)(a).
Or, to put it another way, emoluments are the gross taxable pay plus benefits in kind.