Assets

bigmuggsy
bigmuggsy Registered Posts: 92 Regular contributor ⭐
Hi

Just like to see whether any one else has had the following scenario and what they did, if anything.

I'm preparing accounts for a client, second year of acting for them, and have requested an update record of assets held as the previous accountant never supplied a register nor, as it seems, ever prepared one. Having received my clients list of current assets held it bears no resemblance to the assets on the balance sheet! Turns out for seven years no checks were made for any additions/disposals thus the balance sheet is inaccurate. Anyone else had this problem? Any thoughts be appreciated

Comments

  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I had something similar years ago. I simply pooled the existing capital allowances total and then started afresh with new capital purchases. Does that help?
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    This is, sadly, normal.

    Part of the problem is clients not telling you if they bin, sell, or otherwise dispose of assets. Also I don't think fixed asset registers as you learn in AAT are strictly completed in practice in the same way, or at all in some cases.

    When you take on a new client it's best to have a bit of an asset review, bring things up to date and move forwards from there.

    I had to do an asset revaluation last year that was 6 figures, simply because disposals and revaluations had never been done by the past 2 accountants...!
  • bigmuggsy
    bigmuggsy Registered Posts: 92 Regular contributor ⭐
    Many thanks for your replys
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Monsoon wrote: »
    This is, sadly, normal.

    Part of the problem is clients not telling you if they bin, sell, or otherwise dispose of assets. Also I don't think fixed asset registers as you learn in AAT are strictly completed in practice in the same way, or at all in some cases.

    When you take on a new client it's best to have a bit of an asset review, bring things up to date and move forwards from there.

    I had to do an asset revaluation last year that was 6 figures, simply because disposals and revaluations had never been done by the past 2 accountants...!

    I had a similar problem here, thr asset register did not match the balances on Sage. So a case of reviewing the assets and luckily the balance on Sage could be justified by the valuation.
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