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Thanks Steve for useful article.
Regarding investment property fair values, who decides on fair value of the property. Can the directors decide on it or they need professional valuation? Also what are the disclosures needed if property values are “estimated” by the directors?
SSAP 19 required the names of the persons carrying out the valuation and particulars of their qualifications as well as whether the person undertaking the valuation is an employee or officer of the company etc. were required. Has anything changed under FRS 102?
Can you confirm your thoughts on Investment Properties within a set of micro entity accounts. I have heard so many different opinions. Once you have separated out the land do you have to depreciate the property ? Some clients maintain that their property is appreciating and do not want to depreciate. I was on an FRS course and was told that you do not have to depreciate whilst other accountants are saying that this is not correct and you must depreciate even if the property is appreciating.
FRS105 says that these must be disclosed at cost, which must be split into building and land.
Only the building has to be depreciated.
However, it seems that any impairment will have to be accounted for.
Is it compulsory for micro-entities to prepare FRS105 accounts? Can they just submit "small" FRS102 accounts instead?
This is so that investment properties can still be carried at valuation rather than cost less depreciation of building element.
Not compulsory but clients do not want hassle / cost of having to value properties on an ongoing basis and therefore are opting for 105 rather than 102 Sec 1A
So on the FRS 105 disclosures, should we be disclosing the two additional pieces of information (average number of employees and off-balance sheet arrangements) now? Or should we wait for the standard to be updated?
FRS 105 requires only two notes, but says an entity is "permitted, but not required, to disclose information additional to that required by this section".
So on the FRS 105 disclosures, should we be disclosing the two additional pieces of information (average number of employees and off-balance sheet arrangements) now? Or should we wait for the standard to be updated?
FRS 105 requires only two notes, but says an entity is "permitted, but not required, to disclose information additional to that required by this section".
Questioned this with our institute today and they said as it is required by law the disclosures should be made rather than wait until the standard is updated. Lady there said legislation takes precedent over FRS105.
I think the rules essentially apply to sole traders and partnerships too don't they? A few sole traders I know with balance sheets have unamortised goodwill but does it really matter given there are usually no tax issues.....in other words does anyone care, sole traders are not subject to any external review or regulation so what does it matter?