Accounting for Depreciation and Goodwill

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LDHatfield
LDHatfield Registered Posts: 1 New contributor 🐸
A client of mine has prepared his own Ltd company accounts in the previous year and not accounted for depreciation of fixed assets or amortization of goodwill. I have revised his previous years CT return as he hadn't claimed the Capital allowances but cannot amend the company accounts for the previous year. Can I just claim 2 years worth of Depreciation and Amortization in current accounting period? If so, do I have to include a note stating why?

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    You can't revise accounts at companies house unless the previous ones weren't Companies Act compliant (I believe, from memory).

    I would be inclined to restate the prior year accounts and include the amendments in the comparative figures and do this year's correctly. Not sure if that will fail Co House validation checks though. If it does, a phone call should sort it out and allow it through.
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    I agree with monsoon, but as a slightly separate issue I don't see why you couldn't amend the previous year's corporation tax return to include capital allowances as it really doesn't have any effect on the accounts (apart from an adjustment to the provision for corporation tax, which in most circumstances wouldn't be material enough to require any further action).
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    Actually, sorry, I've re-read Monsoon's post and no, I don't think you can do that. I had something similar about 6 months ago and I had to draw up what I think is called a 'statement of recognised gains and losses' which basically adjusts the B/Fwd balance from the previous year to show the balance after amendments and then you include a note in the accounts with an explanation. I had nice notes on it but I can't find them right now.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    JodieR wrote: »
    Actually, sorry, I've re-read Monsoon's post and no, I don't think you can do that. I had something similar about 6 months ago and I had to draw up what I think is called a 'statement of recognised gains and losses' which basically adjusts the B/Fwd balance from the previous year to show the balance after amendments and then you include a note in the accounts with an explanation. I had nice notes on it but I can't find them right now.
    Thanks Jodie, I'll remember that one :)

    Is that for Co House, or CT, or both?
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    It just forms part of the current year's accounts so it will get sent to Co House and HMRC.



    Now go play with your pole and your chickens (although maybe not together!) and stop worrying about us who've not yet finished!! :P
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    How does that work though?
    e.g. 6 months after CT return deadline you see last year's accounts are wrong. You restate them and send them in with amended CT return. Or are you saying this is not allowed? In which case, do you amend the CT return and not amend the accounts? How does that work? An explanation on the taxcomp to say it will be included on the next period's accounts? *confused*

    No pole today, succumbed to the lurgy so don't feel like being active. Going to go to the tip. Oh, what a reward for doing all those tax returns! :lol:
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