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Charitable company gifted building - how to show in final accounts

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A community interested group and client of mine first formed a company and then also became a charity. Last year they were gifted a building valued at £850K. Has anyone dealt with a similar sitaution? my issue is that filing is required to both companies house and charities commission and without a contra entry I am not sure of how to enter the new asset. I have thought of using the revalutation option i.e cost £1 and revaluation of £850K ??? can anyone help me with this?

Edited at 23 Sep 2020 12:20 PM GMT

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  • # 119087

Acquisition of donated asset

Dr Tangible fixed asset (donated)   With cost, DRC, or market valuation (equipment at cost)
Cr Donation reserve    
Depreciation of donated asset
Dr Operating Cost Statement   With full depreciation charge for period, including on revalued amount
Cr Provision for depreciation account    
Dr Donation reserve   With the same amount as charged to OCS above
Cr Operating Cost Statement    
Revaluation of donated asset (price change)
Dr Tangible fixed assets (donated)   With increase in value
Cr Donation reserve    
Dr Donation reserve   With backlog depreciation (buildings and equipment)
Cr Provision for depreciation account    
Entries reversed if there is a fall in value on revaluation (and see impairments)

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