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What period does a transfer of assets occur?

When a business combination happens using acquisition method which period is used?

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2 incorporated charitable companies (X & Y) combine - both have a year end of 31st March

A transfer document states X is acquired by Y at 00:00 1st April 2021

I believe it's better practice to quote 23:59 or 00:01 to distinguish the intention of end of the year or beginning of the the next but if it says 00:00 it could be either??

Y receives the assets - Does the donation show as income on 31st March or 1st April?

thanks

 

 

 

 

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By johnt27
11th Dec 2020 11:41

Document says 1 April 2021

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By hairyfingers
11th Dec 2020 13:41

Yeah. I'd prefer to have it in the 31st March as then it's all tied off in the prior year. We could update the document to 00:00 31st March but you could argue that's the start of 31st March. so could be 23:59 31st March

It's probably legal question rather than accounts as to what else is affected, like TUPE for instance - I guess in that instance it would need to be 1st

anyhow onwards...

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