Cost basis for disposal of listed shares by ltd co

FIFO or pool as basis for cost?

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Limited company, accounting currently under FRS 105, possibly moving to FRS 102 purchased listed shares in a single plc over a number of years. The limited company has recently been making disposals of those same listed shares. I'm fine applying the rules of s104 pool and establishing the cost basis for Corporation Tax but I'm unsure if - for accounting purposes - I should be allocating costs against the disposals on the same basis as the s104 pool or FIFO?

Is there a choice?

Replies (4)

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By johngroganjga
19th Nov 2021 11:34

I wouldn’t be allocating differently for accounts purposes and tax purposes.

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Replying to johngroganjga:
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By clark.hall
19th Nov 2021 13:16

No, I don't really want to allocate costs differently. Using the cost basis determined under the pooling rules would nicely keep the accounts in-line with tax comps. Just wondered if I MUST use FIFO which does work out differently?

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By Wanderer
19th Nov 2021 11:37

Do the explanations on fungible assets here help?
https://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/techni...

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Replying to Wanderer:
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By clark.hall
19th Nov 2021 16:26

Just got to look at that guidance thanks. So, method of FIFO or weighted average price (same as s104 pool method) is choice available to the directors. Thanks - settles that - Accounting and tax treatment can stay in-line.

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