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VT Accounts FRS 105 & Grants

VT Accounts FRS 105 & Grants

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Hello,

The default FRS105 P & L template shows a 'Gross profit' line but this is after 'Other income'.

As COVID-19 grant income will be included here are others hiding the 'Gross profit' line?

The model accounts I have seen never have a 'Gross profit' line anyway under FRS 105.

 

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RLI
By lionofludesch
20th Apr 2021 18:24

There is no Gross Profit line in FRS 105 accounts.

There isn't even a Net Profit before Tax line.

The FRS 105 P+L is utter rubbish really. Neither use nor ornament.

If you want to give your client some useful figures just do your own, using your own rules, as "Additional Information Not Part of the Statutory Accounts".

I wouldn't necessarily put Covid grants above the GP line anyway, purely as a matter of personal choice. It would depend.

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Replying to lionofludesch:
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By CWservices6064
20th Apr 2021 19:41

The 'Gross profit' line comes up automatically on VT Accounts by default using the FRS105 template and it's not been an issue previously with minimal 'Other income'.

I'll hide the 'Gross Profit' line when there is COVID grant income as I think it's misleading to label it part of gross profit in the full FRS 105 accounts.

I've not seen 'Gross Profit' on any FRS105 model accounts before but I don't think that there is anything stopping the use of subtotals/headings as long as 'true and fair' is achieved which it probably is not if the GP is materially incorrect.

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By Matrix
20th Apr 2021 19:05

I have put them in Other income and changed the description to “Other income - CJRS grants” on the detailed P&L.

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