DLA Disclosure FRS102 Section 1A

Does DLA need its own note under FRS102 Section 1A if the account is in credit

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I don't believe it does but does a directors loan account need disclosing in the accounts if it is in credit? It hasn't ever been a debit. 

I have searched and I cannot see the requirement to make this disclosure if it is the company owing the director (sole shareholder). Other way, I know you would. 

If you do, a point to the legislation would be great. If not, a point to legislation to confirm that, also would be great. 


Replies (6)

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By Wanderer
18th Dec 2023 16:43


Thanks (1)
Danny Kent
By Viciuno
18th Dec 2023 18:17

For future reference you need to look in the FRS for the detail, rather than any specific legislation.

S1A is included in the full FRS102 standard:


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By paul.benny
18th Dec 2023 21:31

The disclosure requirements for transactions with directors and shareholders are set out of FRS102 1AC.35. They require disclosure of material transactions that have not been concluded under normal market conditions.

You may conclude that the transactions giving rise to the DLA are not material or are under market conditions - and therefore are out of scope. But it matters not whether the end balance is debit or credit.

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By bendybod
21st Dec 2023 14:43

If it is significant and could affect the liquidity of the company if the director were to demand repayment, I normally put a note to say something along the lines of "included in creditors is an amount of £x (2022: £y) owing to Mr J Bloggs, a director of the company. Mr Bloggs undertakes not to draw down on this loan to the detriment of the company and, as such, considers it appropriate to prepare the accounts on the going concern basis" or words to that effect.

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By thestudyman
22nd Dec 2023 21:10

Sure I read a Steve Collins article that if the account went overdrawn at any time in the year the full reconciliation needs to be disclosed even if the start and end balance is ultimately in credit.

I might be mistaken but think that is very interesting…

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Replying to thestudyman:
By bendybod
02nd Jan 2024 09:28

Good point which I always do but forgot to mention.

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