just wondering on the accounting treatment for the completion accounts preparation.
A bit of background, client is a pharmacy, wife passed away, looking to sell his pharmacy, has a buyer, basis of sale is a share purchase agreement with no assets/liabilities, to the extent that any increase/decrease in NCA will affect the cash sale price, ie, greater NCA increases cash sales price and a decrease reduces the cash sale price.
However when reading through the SPA, specifically the required accounting principles, I noticed that one of the requirements stipulated that the fixed assets must not have any value attributed to them.
So my question is, how do I account for the effective write off of the fixed asset value (circa 40k), would it be through the PL of the completion statements, directors loan account or equity adjustment??
Any assistance would be greatly appreciated.