Franchise write- offs

Anne Boleyn
Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
Hi All

I hope that someone can give me some help.

I have a client (LTD) that purchased a franchise a couple of years ago. All was well for a while, although not bringing in as much income as expected. Then the franchisor (seller) did a bunk owing my client a fairly sizeable chunk of commission which they will not be able to recover. My question is that the franchise has been amortised for a couple of years but a large amount is still left as an asset. I have looked at FRS10 and believe that I can write this off as irrecoverable, through the P&L. Also, do I have to make a disclosure of this within the accounts.

Thanks to all who read this and those that leave a comment.
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