Overdrawn loan account

Gill Gittings
Gill Gittings Well-KnownRegistered Posts: 121
Wonder if somebody can help as I am tearing my hair out. I have a client with an overdrawn directors loan account to the tune of about £30k. I have done some reading up and it seems every transaction needs to be put in the notes in the accounts which makes the accounts look silly. My boss is saying there is no way it should be itemised. Is there any other way around this so I don't have to disclose every item or can I just put a summary of the loan account?

Comments

  • Monsoon
    Monsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Technically you have to disclose everything.

    I think most people are doing the sensible thing and summarising.

    Steve Collings mentioned this in a thread very recently. He said that until they change the rules, technically you have to disclose every single transaction. Which of course is ludicrous (the rule, that is, not Steve!!).
  • Gill Gittings
    Gill Gittings Well-Known Registered Posts: 121
    Thanks Monsoon. I had read something that every transaction needed disclosing and found something written by Steve confirming this but it just seems so silly. My boss has refused to allow us to do this so who am I to argue? Do you know when they might change this requirement?
  • AK002
    AK002 Font Of All Knowledge Registered Posts: 2,492
    Is it not material transactions only? Our firm aggregratet the total advanced and repaid and disclose the max balance for overdrawn loan accounts.
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