I have recently taken on a small car repair garage as a client. It is a Ltd company run by husband and wife directors It had been a partnership and incorporated a few years ago. The premesis is on the balance sheet along with a loan to pay for said building. When quizzed I learned that the building was in the personal names of the directors - they had done this to protect this from the company's liabilities (and previous accountant was made aware of this) and the loan was from a parent of one of the directors.
I now look to prepare my first set of accounts for them and was wondering what was the best way to extracate the building and loan incorrectly included (and depreciated) in the accounts. Fortunately there is just about sufficiant Director's Loan account to do this. Should I remove in my year as a disposal?, do I restate previous year? Do I go back further?? I cant see any tax implication of this so I dont have particular worries there - I just want to show a true and fair view.
Any suggestions gratefully received