Isle of Man Companies

Companies Act takes Precedent

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Hi accounting web hero's,

Ive prepared a set of financial statements under FRS 102 1A, attained my property values etc but now my senior is saying since these aren't being audited I shouldn't have done this and the Isle of Man Companies Act 1931-2004 takes over and I shouldn't of done this and put a note in.

Would this be the same under a Isle of Man Companies Act 2006 (as far as I can tell you don't have to prepare financial statements) and under FRS 105 I wouldn't follow the method of depreciating.

My head now hurts and all I'm getting back is "just do it", I think she's in a bad mood and I do now feel a bit stupid but I'm certain this is wrong.

I want to challenge her but it's coming up to apprisial and pay rise/bonus time and I don't want to fall foul of a bad one for challenging someone.

Lost and Conflcited 

Replies (9)

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By Roland195
02nd Nov 2023 13:39

Never prepared a set of accounts for an IOM company in my life but what good do you think will come out of being proven right (even if you are right)?

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Replying to Roland195:
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By Accruals
02nd Nov 2023 13:53

For my own piece of mind I’ve done it correctly and not having time written down against me.

It wasn’t an antagonistic comment, I’m merely wanting to make sure I’m doing it correctly and I can’t get a straight answer from my senior who’s response is “just do it”.

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Replying to Accruals:
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By Roland195
02nd Nov 2023 15:45

I didn't appreciate that your senior hadn't actually explained what you should do. Doesn't sound like a great place to work if this would be held against you.

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Replying to Roland195:
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By Accruals
02nd Nov 2023 16:04

I’m really getting this impression, I just feel stupid asking for help now, “how don’t you know this, it’s such a basic thing”.

Sorry for troubling anyone and thank again for replying.

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By paul.benny
02nd Nov 2023 15:12

A few minutes' research online indicates that the IoM Companies Act 1982 is relevant, which says (s3A) that accounts should be prepared in line with IFRS, UK or US GAAP. The 2006 act does not appear to make any provisions about basis of preparation.

What was the stated basis of preparation of the prior year accounts?

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Replying to paul.benny:
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By Accruals
02nd Nov 2023 15:33

Thank you and I’ll have a look.
It was revalued last year. Which made me follow on from the previous year.

I feel stupid for asking for help, but my senior just isn’t interested but I at least want to justify why I’m asking (questioning further) on this, before being called stupid again.

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Replying to Accruals:
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By paul.benny
02nd Nov 2023 16:08

Accruals wrote:
It was revalued last year. ..

But what do the the accounting policy notes say? They normally state the basis of preparation (eg FRS102 1A as you indicate) and the policy for investment properties.

If you have a new valuation for the current year, where has this come from?

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Replying to paul.benny:
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By Accruals
02nd Nov 2023 16:34

Policy is under FRS 102 1A and investment properties to be revalued on a yearly basis.

I requested the property valuation from the property managers (RICS quals, as per previous year) and prepared as such.

My senior is new (I didn’t say sorry) and she’s not that nice. Not approachable at all.

You guys have been way more helpful, thank you.

I might just do as she wishes and send for review again. I know you folks have way more important work to do than deal with my trivial question.

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RLI
By lionofludesch
03rd Nov 2023 18:16

"I shouldn't have done this and the Isle of Man Companies Act 1931-2004 takes over and I shouldn't of done this...."

Ach - and it started off so well.

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