Yes it seems so, I can't see where else it could go other than to the P&L unless the balance is posted to the ROU asset ?
They subsequently sold the asset and so I suppose even if you posted it as a debit to the ROU Asset and increased its value, the loss would subsequently be accounted for on disposal, would you agree?
One partnership operates a family farm the other is a family run farm shop run by the same partners. It is just a general partnership not LLP
The farm wants to borrow money and the bank will only lend if the partnerships are brought under the same umbrella, they have asked, for now, to be presented with a consolidated set of accounts to take a view as to what that would look like.
So moving forward the two separate partnership would become one, my question should have been
a) Is consolidating two partnerships legitimate - it seems not really although it could be worked
b) Could anyone point me to the standard that could provide guidance on bringing the partnerships under the same umbrella - would one have to provide consideration for the other or would you simply just create a new partnership agreement, put all transactions through the same bank and start accounting for it as a single entity?
Sorry, I must have misunderstood I thought this was a community where answers could be sought but I am also studying the CFAB in order to understand more so getting a jog on myself!...But I've looked through the syllabus and VAT reconciliation reports aren't covered perhaps you could point me to a resource I can use
The nominee is my client but happy to transfer back at nil value as long as he is protected and HMRC won't knock on the door and say that there is a liability to declare
Even if HMRC were to say it's a transfer at undervalue though we could use gift relief to kick any gain into the long grass and the CGT would be owed by the beneficial older if he were to ever sell those shares again. Does that sound right?
My answers
Thankyou that is most helpful, appreciate your time!
Yes it seems so, I can't see where else it could go other than to the P&L unless the balance is posted to the ROU asset ?
They subsequently sold the asset and so I suppose even if you posted it as a debit to the ROU Asset and increased its value, the loss would subsequently be accounted for on disposal, would you agree?
One partnership operates a family farm the other is a family run farm shop run by the same partners. It is just a general partnership not LLP
The farm wants to borrow money and the bank will only lend if the partnerships are brought under the same umbrella, they have asked, for now, to be presented with a consolidated set of accounts to take a view as to what that would look like.
So moving forward the two separate partnership would become one, my question should have been
a) Is consolidating two partnerships legitimate - it seems not really although it could be worked
b) Could anyone point me to the standard that could provide guidance on bringing the partnerships under the same umbrella - would one have to provide consideration for the other or would you simply just create a new partnership agreement, put all transactions through the same bank and start accounting for it as a single entity?
Thanks for replying most helpful
WOW!!!..no just a humble entrepreneur trying to better my understanding still best to keep that knowledge gap as wide as possible it seems
Sorry, I must have misunderstood I thought this was a community where answers could be sought but I am also studying the CFAB in order to understand more so getting a jog on myself!...But I've looked through the syllabus and VAT reconciliation reports aren't covered perhaps you could point me to a resource I can use
Thank you for responding
The nominee is my client but happy to transfer back at nil value as long as he is protected and HMRC won't knock on the door and say that there is a liability to declare
Even if HMRC were to say it's a transfer at undervalue though we could use gift relief to kick any gain into the long grass and the CGT would be owed by the beneficial older if he were to ever sell those shares again. Does that sound right?
Thank you very much for the help and advice, it is much appreciated
Thanks
Adam