Disclosure of debtors over 1 year

Disclosure of debtors over 1 year

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On the face of the balance sheet prepared via Taxcalc the amounts owed by associates over 1 year is showing within Current Assets,  Debtors, the supporting note splits this figure into within and after 1 year, my perception is that the debt due over one year isnt a Current Asset, why is Taxcalc showing it this way, I have used the over the Debtors over 1 year code. Thanks

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By Duggimon
07th May 2024 15:08

This is a judgement call only required by the FRS if it is necessary for the purpose of showing a T&F view. Your software likely won't do it automatically but there should be an option for it somewhere in your configuration.

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By CW2012
07th May 2024 16:08

Thanks , I will see if the option exists, the amount is material.

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By DJKL
07th May 2024 16:45

TaxCalc Accounts Production, last time I tried a good few years back, was not that friendly re being able to change main doc layouts, yes notes could be altered but main layouts I could not find a way to edit (and Support at the time could not help)

Maybe these days it is possible?

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By CW2012
07th May 2024 16:56

I've just emailed them, I'm about to find out.

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By thevaliant
07th May 2024 21:55

If it helps, Caseware accounts production shows debtors > 1 year seperately on the face of the B/S, but puts it within Current Assets.

I'm vaguely aware when I queried it many many years ago, that this was the correct treatment (under CA 1985).

It seems wrong, but I'm told it's right.

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By kim.shaw-and-co.com
07th May 2024 22:02

It's not just TaxCalc - CCH is awful with this too - it's shown split in current assets on the balance sheet and then broken down into current/non-current <1yr and >1yr in the notes. Which is basically a contradiction.

Just left it like that the last time and the auditors had no issue with it despite materiality of non-current debtors.

The over-rides would not force a current/non-current split on the balance sheet. The work involved in trying to manually configure a balance sheet with non-current assets (with associated irrecoverable time costs) was so totally disproportionate the exercise was abandoned. This was deferred tax though - perhaps if it was another form of financial asset it may have been more important to present things more consistently.

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By Tables Force
07th May 2024 22:09

https://www.legislation.gov.uk/uksi/2008/409/schedule/1

(It's in the notes after "Section B: The required formats for the accounts of companies other than micro-entities", have a look at Note 5: Debtors)

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By CW2012
08th May 2024 09:17

Thanks , this is what I read,

"The amount falling due after more than one year must be shown separately for each item included under debtors"

I looked on Croner and found the below,
"Debtors due after more than one year must be disclosed separately on the face of the balance sheet if the amount is so material, in the context of the total net current assets, that the absence of the disclosure could lead readers to misinterpret the financial statements".

If this is the case then surely the software would accommodate it, it can't be a rare occurrence that a company is owed a materially significant sum spread over more than a short period.

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