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Directors current account, disclosure

Directors current account, never overdrawn. Presentation in Micro accounts submitted to Co Ho

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In the past providing the directors current account had not been overdrawn in the year it was my practise not to disclose in accounts submitted to Companies House. With a figure ranging from £1,300 to £7,000 it could be said to be material to the company.

Is it a legal requirement to disclose the opening and closing balance and movement. This is not an interest bearing loan to the co.

 

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By atleastisoundknowledgable...
18th Mar 2019 13:58

No, not if a creditor.

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RLI
By lionofludesch
18th Mar 2019 15:06

Here's the disclosure template.

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By atleastisoundknowledgable...
18th Mar 2019 17:36

Your probably breaking GDPR if you do overdisclose!

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Replying to atleastisoundknowledgable...:
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By MissAccounting
19th Mar 2019 09:09

atleastisoundknowledgable... wrote:

Your probably breaking GDPR if you do overdisclose!

To be fair, you're probably breaking something GDPR related just getting up in the morning.

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By johnt27
19th Mar 2019 13:19

Quote from Financial Reporting Faculty of ICAEW:

Small entities applying Section 1A are required to disclose material transactions entered into with their directors and owners holding a participating interest in the entity that have not been concluded under normal market conditions. Therefore, particulars would need to be disclosed if a loan from either a director or shareholder had been interest-free or at a below-market rate, if material.

The exemption to not disclose credit balances, referred to by others, is mistaken as it is relevant to the requirements to apply FV to interest-free or below-market rate loans.

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Replying to johnt27:
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By Wanderer
19th Mar 2019 13:28

Depends on interpretation of 'normal market conditions'.

Most lecturers advice is that it often is normal market conditions in small companies for a director / participator to have a loan account to the company with no interest.

Also there is a further exemption, in certain circumstances, not to apply Fair Value.

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