Tweedie defends IASB fair value policy at ECOFIN meeting

Tue, 16 Mar 2010 18:12:51 +0000

IASB chairman Sir David Tweedie is not a man given to kow-towing to anyone, but he was on his best behaviour this week as he defended the board’s technical policies at a meeting of the European Union’s ECOFIN ministerial council.

Investment Property or Freehold

Tue, 16 Mar 2010 13:45:12 +0000

A company owns two commerical units which in the past have been used by themselves as classed as Freehold property in the accounts. They now only use one and rent the other out to other companies and expect that this will be the case from now on. Should this now be reclassified as an investment property or is it ok to leave it as freehold property in the accounts?

Thanks

Company limited by guarantee - error in settup

Tue, 16 Mar 2010 10:38:11 +0000

I have a new client who runs a small trading company that started around a year ago (i.e. first set of accounts). We have just discovered that the company that he (the client) setup was mitakenly setup as a company limited by guarantee rather than shares. The company has done many transactions in the year, including paying dividends to the (supposed) shareholders.

Can anybody please advise how we can rectify this issue now? How do we account for the dividends paid to the supposed shareholders?

What are the tax implications of this error?

Auditors under fire following Lehman revelations

Tue, 16 Mar 2010 10:04:34 +0000

The US court examiner’s report into the Lehman Brothers collapse implicated Ernst & Young in the bank’s downfall, but where does the auditor’s responsibility end in relation to fraud? Steve Collings reports.

two creditors ledgers in same company

Mon, 15 Mar 2010 12:35:41 +0000

Client wants to get the same reporting detail in Sage for sundry creditors. Sage does not allow for two sets of creditors ledgers (Unlike some other software). Client does not want to confuse trade creditors with sundry creditors.

Any solutions out there?

Faint hope but if you do not ask..

Provision for replacement of equipment

Sat, 13 Mar 2010 12:58:21 +0000

Can anybody give me any information on provisions set aside to fund future capital expenditure (replacing assets or major equipment). information on the rules, accounting standards, accounting treatments and any other information would be really helpful.
thanks

Lehman’s chief denies involvement in accounting fraud

Fri, 12 Mar 2010 15:56:54 +0000

Lawyers for Lehman’s chief executive Dick Fuld say he had nothing to do with the ‘repo 105’ transactions used to hide the bank’s losses.

Music company

Fri, 12 Mar 2010 14:18:28 +0000

Thank you in advance for any guidance on this subject.

I've been asked to prepare the CT returns for a music production company and need some guidance on the accounting treatment of certain expenditure. I am a tax adviser, not an accountant, so will be getting someone to prepare the accounts and then I will look at the tax, but I'd like to canvass readers' views in advance.

Basically the company is a vehicle for a singer to launch himself. He has contributed funds to the company (by way of loan) and the company has produced an album which is it now selling.

Unaudited accounts filed instead of audited

Fri, 12 Mar 2010 14:01:47 +0000

A client has recently moved to a new firm of accountants (no qualifications on headed paper) citing that our fee was too high (we are ICAEW firm).

The company has £10million net assets (only £500k t/o) and so we prepared audited accounts in previous years.

We have not been approached by any new auditors and the new accountants did not make mention of the audit in their letter (although we did in our reply) and we have not been asked to resign as auditors.

Directors' disclosures and abbreviated accounts

Fri, 12 Mar 2010 12:24:48 +0000

Where can I find a comprehensive list of disclosures required by the Companies Act in respect of directors' transactions to be included in abbreviated accounts to be filed. Many thanks.

Funny Old World!

Fri, 12 Mar 2010 09:19:01 +0000

Could someone just remind me - Who were the auditors of Equitable Life and Lehman Bros?

Funny Old World!

Companies House late filing penalty

Thu, 11 Mar 2010 21:15:50 +0000

I have recently sent in a set of clients accounts on the 26th Feb for a May 31st year end. It was there first trading period, and the compnay incorporated on the 19th May 2008. I have received a penalty letter stating that the accounts were late and should have been filied by the 19th! But then I have other clients who have incorporated mid month and have been given nine months from the year end to file! I am confused, why are there varying rules across my client base? Is there anyway i can appeal this penalty?

Offshore Companies

Thu, 11 Mar 2010 10:27:51 +0000

Hi Guys,

My client is based in UK, but has a company thats trading in Jersey. His the director and not secretary.

Is it possible to elect the secretary from UK or will this have to be someone resident in Jersey and can the Secretary be related to the Director......

Offshore companies are being kept an eye due to money laundering, I am confused about appointing the secretary. Your help will be highly appreciated.

iXBRL - please don't try this at home...

Thu, 11 Mar 2010 10:06:02 +0000

Practice automation and Excel expert Simon Hurst is one of those who has been encouraging accountants to embrace the potential of electronic filing and XBRL. Not that everyone's talking about it, he takes an introductory stab at trying to add XBRL to a set of accounts in Excel...

LLP

Wed, 10 Mar 2010 22:02:48 +0000

a bookkeeper in a small LLP. One of the designated member transacts with LLP by putting money in the bank account and and then taking part or whole of it back later on. My questions are as follow:

- Where should these transaction go in the balance sheet (Loan or Capital Current Account)?

- Will there be a related party note for such transactions in the accounts?

Regards

Exchnage Gain on Revaluation

Wed, 10 Mar 2010 10:01:19 +0000

A company has received advance for issue of its own shares in foreign currency. On translation in the functional currency the Company had exchange gain.
What should be treatment of this exchange gain? should this be:

1. Credited to profit and loss account;
2. Credited directly to retained earnings; or
3. Showned as liability to the person providing the advance.

Property purchase costs

Wed, 10 Mar 2010 08:46:51 +0000

I have been asked the question, a company set up to hold property has incurred title and closing fees (solicitors costs) in purchasing a property, how are these to be treated for reporting purposes? Are they to be treated as an intangible or tangible (as part of the property cost) or as an overhead to the P&L.

Thanks for any help on this one.

difference between GAAP and IFRS - terminology

Wed, 10 Mar 2010 01:19:41 +0000

I'm looking for a list of equivelent terms (not standards) to translate from GAAP to IFRS. I don't mean the differences/similarities in standards, just the words, for example:

turnover = revenue

balance sheet = statement of financial position

p&l = statement of income

debtors = etc.....

This is like metricisation and decimilisation all over again, just when you get it down pat, they move the goal posts.

A link to a table of comparative words would be fantastic!

What value should just the Freehold have?

Tue, 09 Mar 2010 13:15:00 +0000

I have a client who owned the freehold on a property which he converted to 4 flats. He then sold the whole property to a limited

company, of which he is the director, for £230000. The company then created leases for each of the four flats and sold them all back to

him for £230000, but kept the freehold. He now rents the flats out, and pays a ground rent to the company.

Presumably, the freehold should be shown in the company's balance sheet, but at what value?

Accounting For 'Freely Acquired' Fixed Assets

Mon, 08 Mar 2010 16:46:17 +0000

Good Afternoon,

I am trying to account for a fixed asset (lets say worth £2k) which has been left to the company 'Free Of Charge,' in the Balance Sheet

So, the Co actually paid nothing for it, however, its 'real world value' is £2k (ie what we could expect to recieve if it was sold tomorrow)

It seems one option is to debit fixed assets & credit revaluation reserves, but is there any other preferred methods?

Thank you in advance for any suggestions

Regards

Mathew