Hello everybody
Recently saw an article on accounting web re how to post the fees and interest payments for the business bounce back loan, in particular the once for the first year.
As these are covered by the Government, the article said that the fees and interest need to be treated as grant income. Can anyone post the link to that article here perhaps?
Many thanks.
Replies (10)
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Only accountants care about this time-wasting nonsence. Agreement fees?
FRS 102?
Even then materiality?
I had/have just shy of £60k prepaid fees sitting on our balance sheet being released over ten years (since December 2016 drawdown), arrangements fees/costs can rack up. (Our profits, ignoring revaluations, tending towards the £500k level, so imho £60k is material)
That is a serious sized Bounceback loan
Most any of my clients got was £50,000.
It is not a bounceback loan, just bank loans, but the concept is the same.
Yes principle applies the same but I only work with mostly micro and do not intend to create confusion for non-sophisticated clients.
Only accountants care about complications and disclosures.
My clients really only interested in how much tax to be paid. HMRC pretty much the same, other than for related parties.
Found it:
https://www.accountingweb.co.uk/tax/hmrc-policy/covid-19-accounting-cbil...
This is not the bounce back loan but I figured the same rules apply for posting government paid fees?
There is no liability or payment or BIP so why should there be any accounting of non existent ephemeral transactions
I agree grant income and interest expense