A commercial property company sold its only property 2 years ago and recorded a gain and paid tax on the gain.
A. The company has been waiting for the construction retentions refund which had 2 years expiration period, however the company failed to get the retention refunded and therefore the receivable has to be expensed.
B. In addition, the company recently received invoices from a supplier regarding work done on the buildings 2 years ago which were not invoiced before.
So how best can you post these two expenses given the asset was lost and the gains already computed and recorded in prior accounts. One way is to adjust profit on disposal or sundry expenses - do you agree?