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Balance sheet disclosures under FRS105

Never had any clear advice on this; disclosure or director's advances and credits.

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Can anyone provide some advice on this; FRS105 requires the balance sheet note in relation to directors' advances and credits. There is some confusion here as to whether this should only be disclosed if the director's loan account is overdrawn and that, if there is a closing credit, no disclosure is required. What do people think? 

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By lionofludesch
09th Aug 2019 19:05

I vote only disclose if the director owes money to the company.

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By atleastisoundknowledgable...
09th Aug 2019 20:35

Me to.

I think I’ve actually been told this in a course by Guy Lovejoy.

EDIT: Guy Loveday

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By MatthewJShaw
14th Aug 2019 13:45

The closing position is no relevant. The key issue is whether there has been an overdrawn loan account at any point during the year.

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By johnt27
20th Aug 2019 13:22

The disclosure requirements of FRS 105 are no different to previous UK GAAP and have not changed since the inception of Companies Act 2006 which clarified that all companies are required to disclose advances to directors (i.e. balances that take their loan accounts overdrawn) and overdrawn directors loan balances along with the terms. Disclosure is also required of any guarantees.

The key difference between FRS 105 and 102 1A is that you do not need to consider whether or not a directors overdrawn loan should be discounted to FV. This is irrespective of whether you apply the triennial review changes early or not as overdrawn directors loans are specifically excluded from the relaxation of the rules on discounting applied to small entities.

The disclosure requirements in FRS 105 reflect fully s413 of CA2006.

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