Thanks for reading and I hope you can assist with this challenge I have.
Recently picked up a new client whose trade is hire of suits,. The balance sheet shows a stock of suits for hire of some £50k. Now my questions are as follows :-
1) Should these really be shown as fixed assets as they are generating an income?
2) If they they are fixed assets,this means AIA's haven't been claimed historically. Is AIA available this year on reclassification of the £50k? It would be impossible\very difficult to find the year of purchase and adjust the corresponding previous years tax returns.
3) Should we make a prior year adjustment within the accounts