I am preparing ltd co accounts to July 2012.
The company has been trading since Aug 2009 and another accountant did July 2010 and 2011 Y/Es.
Unfortunately they treated a finance lease as a rental, ie charged 20K of payments to P&L each year. There are another 20K of payments in 2012 too - finished July 2012 too. So they've paid 60K for eqpt worth 42K. Title was transferred on August 2012.
I think this should have been capitalised and interest and depn charged to P&L. Well myself and the client want this to happen as it will increase reserves, profits etc for his own personal mortgage requirements.
I want to do a prior year adjustment to disallow rental charge in 2010 and 2011 accounts, capitalise from the start etc. I think I need to change the 2011 comparatives. Do I need to change 2010 too? Do I physically need to send any accounts anywhere (HMRC or Co House) - I don't think so, although will make full disclosure to HMRC at the current time.
I know about where to put the PYA bit in the 2012 accounts, and the SRTGL note, but physically can it all be done on the 2012 accounts??
Any help please.