Notes to the accounts re directors salary

Jmann
Jmann Registered Posts: 68 ? ? ?
I am using VT software to produce final accounts for the limited company. VT software do not have a separate note for directors salary. Instead it is included in a note for operating profit,
"Operating Profit

This is stated after charging
-Depreciation
-Amortisation of goodwill
-Directors remuneration
-compensation to past director for loss of office
etc

My question is do I have to have a separate note disclosing directors salary? or it is sufficient within operating profit note.

How everyone discloses the directors salary in the accounts?

Comments

  • Steve Collings
    Steve Collings Registered Posts: 997
    Hi,

    You should disclose the directors' remuneration (including benefits in kind and other forms of remuneration) within the operating profit note. You should also disclose any pension contributions made for the director as well as the number of director(s) for whom retirement benefits are accruing under defined contribution/benefit schemes. Avoid a common error, and do not include employers' national insurance contributions within directors' remuneration.

    Regards
    Steve
  • Jmann
    Jmann Registered Posts: 68 ? ? ?
    Thanks you Steve for clarifying my confusion. I have more questions for you.

    Reason I was confused as I got a sample accounts issued by one of the CCAB body, and they have separate notes for the directors remunerations.

    You mentioned BIK. The compnay's year end (Sep-09) do not coincide with the tax year (5th April), so what figure should be included?

    Thanks

    John
  • Steve Collings
    Steve Collings Registered Posts: 997
    Hi John,

    The directors' remuneration disclosure is a Companies Act requirement, as opposed to a disclosure requirement under the accounting standards, hence separate disclosure.

    In terms of the BIK's you can use the cash equivalent values on the April 2009 P11D's.

    Regards

    Steve
  • Jmann
    Jmann Registered Posts: 68 ? ? ?
    Thank you Steve for your help. I do appreciate.

    I just looked at the sample accounts again (after reading your second post). And you are correct. They did not disclose the salary within "Operating Profit Note" instead they disclose as a separate note.

    I will do as per your post No. 1, disclosure within the operating profit note.

    Thank you again for your help.

    John
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