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FRS 105 commitment no commercial unit lease

FRS 105 commitment no commercial unit lease

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A new client has a business unit but no written lease. They have occupied the unit for several years and paid a commercial rent that has been increased from time to time. I'm told that there never has been any written agreement.

I've suggested that they get a lease drawn up.

If there is no formal lease, what should be included in terms of FRS105 financial commitments?

Is 6 months notice the default position or is this just the minimum obligation of the landlord should they choose to evict?

 

 

 

 

Replies (4)

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By zebaa
04th Jul 2022 16:39

The default position is the period of the rent payment for both tenant and landord in absence of any agreement (non residential) . Thus if the rent is paid monthly, either party can give a months notice to end the tenancy.

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By Paul Crowley
04th Jul 2022 18:55

FRS 105
Micro accounts
No notes needed other than loans to directors and employee numbers
All the rest optional

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Replying to Paul Crowley:
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By CWservices6064
04th Jul 2022 21:11

Company law disclosure requirements for micro-entities in the UK include:

6A.4 The total amount of any financial commitments, guarantees and contingencies that are not included in the statement of financial position must be stated.

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Replying to Paul Crowley:
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By Wanderer
05th Jul 2022 07:11

Per my FRS105 Accounts Disclosure checklist:-

Quote:
GUARANTEES AND OTHER FINANCIAL COMMITMENTS
Total amount of any financial commitments, guarantees and contingencies not included in the balance sheet with separate disclosure of:
i) total amount of pension commitments;
ii) total amount of commitments undertaken on behalf of or for benefit of:
a) any parent, fellow subsidiary or any subsidiary of the entity;
b) any undertaking in which the entity has a participating interest.
Nature and form of any valuable security given in respect of commitments, guarantees and contingencies not included on the balance sheet.
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