Interesting case, particularly for my HND accounting students studying business tax and income tax. One of the assessments is on the subect of employment contract v contract for services. I will let my students view the content of this article for a "real" case on the subject!
Neil, interesting tribunal case and one that tests the very basis of accruals accounting. Does this take the world back to the principle of bartering, if cash has not been paid in exchange for goods? Indeed, does this go to the very basis of currency? Have a look at that bank note; the promise might mean that you do not own the assets that backs that promise and the note is worthless!! Difficult concept, particular here in Scotland where there is not the principle of "legal tender". Very interesting problem and challenges that old chestnut; "possession being nine-tenths of the law". Is the whole credit system in doubt or is this a case of the law (or those expressing it) being an [***]?
Stephen Ranscombe ACA TQFE
Lecturer in Accounting
Moray College UHI
I have just joined the web site after looking for articles regarding IAS 40 and the differing treatment of gains / losses on revaluation. I am semi retired and presently I lecture in accounting mainly to HNC / HND students. One unit dealing with standards is still focusing on SSAP 19 and I have been taking the students through the differences in the two standards and how these are reflected in financial statements. An interesting extension to the comparison is to now to bring in the changes to UK GAAP of FRS 102, which appears to supersede the old SSAPs that were still in force. FRS 102 appears to align itself with the international standard, although treatment of gains and losses within a revaluation reserve is not mentioned nor, however, is the carrying of them directly to P&L (Statement of Income). Does this leave a choice?
It is interesting to an "old" accountant, who was around and qualifying when SSAPs were being developed and brought in, to see how far standards generally have taken the profession and how interpretation and re-interpretation continues some forty+ years later. FRS 102 has even taken me back to a balance sheet that lists assets on one side and liabilities on the other (although not back to a horizontal format!). Where to next?
My answers
Interesting case, particularly for my HND accounting students studying business tax and income tax. One of the assessments is on the subect of employment contract v contract for services. I will let my students view the content of this article for a "real" case on the subject!
Neil, interesting tribunal case and one that tests the very basis of accruals accounting. Does this take the world back to the principle of bartering, if cash has not been paid in exchange for goods? Indeed, does this go to the very basis of currency? Have a look at that bank note; the promise might mean that you do not own the assets that backs that promise and the note is worthless!! Difficult concept, particular here in Scotland where there is not the principle of "legal tender". Very interesting problem and challenges that old chestnut; "possession being nine-tenths of the law". Is the whole credit system in doubt or is this a case of the law (or those expressing it) being an [***]?
Stephen Ranscombe ACA TQFE
Lecturer in Accounting
Moray College UHI
Investment Properties Revaluation
Steve,
Good morning!
I have just joined the web site after looking for articles regarding IAS 40 and the differing treatment of gains / losses on revaluation. I am semi retired and presently I lecture in accounting mainly to HNC / HND students. One unit dealing with standards is still focusing on SSAP 19 and I have been taking the students through the differences in the two standards and how these are reflected in financial statements. An interesting extension to the comparison is to now to bring in the changes to UK GAAP of FRS 102, which appears to supersede the old SSAPs that were still in force. FRS 102 appears to align itself with the international standard, although treatment of gains and losses within a revaluation reserve is not mentioned nor, however, is the carrying of them directly to P&L (Statement of Income). Does this leave a choice?
It is interesting to an "old" accountant, who was around and qualifying when SSAPs were being developed and brought in, to see how far standards generally have taken the profession and how interpretation and re-interpretation continues some forty+ years later. FRS 102 has even taken me back to a balance sheet that lists assets on one side and liabilities on the other (although not back to a horizontal format!). Where to next?
Stephen