How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3822
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Good Morning Company Accounts Requirements I would appreciate

Customer Question

Good Morning

Company Accounts Requirements

I would appreciate your advice on the following:
A company had a revaluation of assets (land and property)after many years. The subsequent valuation showed a substantial increase in value by 500%. The information was available shortly after the company year end. The accounts were prepared and submitted nine months later. The query is whether there should have been a post balance sheet event addition to the accounts to show the true value?

Subsequently there was a company share re-purchase transaction. This used the lower valuation rather than the updated one to determine value of shares and amount due plus amount of stamp duty. Was this in order?
Any information would be appreciated.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question. I am, amongst other things, a Chartered Secretary, so may be able to shine some light on your worries. You are correct in your thinking that a post balance sheet event should have been recorded in the published accounts, especially as the values were revealed long before the accounts were actually prepared. However, it is no use crying over spilled milk. I would suggest that when the next set of accounts are prepared the, prior year's are re-stated and a note added. I have had to this myself on a couple of occasions. You could also send a copy of the revised Abbreviated Balance Sheet to Companies House, they still accept hard copy filings, in substitution for the existing ones recorded.

 

Stamp duty is calculated and levied on the actual cash changing hands as a result of the transaction. Providing the duty stamped by the Stamp Office in Birmingham on the share transfer form conforms to this amount then the transfer form is a valid document.

Customer: replied 3 years ago.

Many thanks for the info most helpful. Can I just ask one more question in that perhaps I should make it clear that I think the revaluation was not entered as a post balance sheet event because the company was trying to hide its asset value for other purposes. I assume this makes no difference for filing purposes but might for legal ones which I do not expect you to comment upon of course.

Expert:  bigduckontax replied 3 years ago.
I could not possibly comment upon such a matter, of course. I have known of similar situations occurring in the past! For filing purposes it doesn't make a hap'worth of difference.

Thank you for your follow up. Please be so kind as to rate me before you leave the site.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your excellent support.

Related Tax Questions