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Webfiliing PDF Template Abbr. Accounts - o/d DLA and what to do with it?

imeldabyeimeldabye Well-KnownRegistered Posts: 147
Hello all

Filing accounts for a small ltd company that shows an overdrawn DLA of £1,350 at year end.
have the following queries when it comes to how to show this in the CH abbr. accounts PDF template- as I need to disclose the O/D DLA (right?:blushing:)
1. Do I disclose this as a note in Debtors? If so is there a correct way to "word" the information in the Additional Information box?
2. Or Do I disclose this in the Transactions with directors? If so- are there certain phrases I need to include (something like the loan is repayable on demand, no interest payable etc. etc.)?
3. Do I need to name the Director?
4. Does this have anything to do with the Related party disclosures box?

Thank you Thank you

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    In the BS, just include it in the debtors figure.

    1. No
    2. Yes. I just copy what the VT note says. It's usually along the lines of "general loan to director, opening balance x lent in year x closing balance x.
    3. I don't believe so, no. I don't.
    4. No

    :)
  • NewbieNewbie Well-Known Registered Posts: 229
    I usually include the directors name not sure if its necessary, you would also need to show the loan on the Ct600 suppliment as outstanding or repaid
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I did a course on this just recently. It has to be disclosed in transactions with directors as it is an overdrawn loan account but I believe you don't need to put the name there (although my software doesn't seem to let me not put it there). It also has to go in related party transactions where the name is disclosed. I think I've remembered that correctly, I'm sure Steve will let us know if not.

    As I understand it an overdrawn loan goes into transactions with directors but doesn't need to if it's a credit balance but any directors balance (either way) goes into related party transactions, along with dividend payments.

    The transactions with directors note appears in both sets of accounts but the related parties note appears only in the full accounts.
  • Steve CollingsSteve Collings Experienced Mentor Registered Posts: 997
    Annette is correct. An o/d directors loan account is a transaction with a director (not just a related party transaction) and as such must be disclosed as such under Companies Act 2006. I have seen such transactions being put as a related party transaction in the full accounts but what sometimes happens is that if this is treated as a related party transaction it does not filter through to the abbreviated accounts (note FRSSE/FRS 8 applies to true and fair accounts, not abbreviated accounts).

    Loans from a director do not require disclosure under Co Act but do need to be disclosed as a related party transaction (and, like Annette says, dividends as well) - divis = full accounts only.

    Regards
    Steve
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    Annette is correct. An o/d directors loan account is a transaction with a director (not just a related party transaction) and as such must be disclosed as such under Companies Act 2006. I have seen such transactions being put as a related party transaction in the full accounts but what sometimes happens is that if this is treated as a related party transaction it does not filter through to the abbreviated accounts (note FRSSE/FRS 8 applies to true and fair accounts, not abbreviated accounts).

    Loans from a director do not require disclosure under Co Act but do need to be disclosed as a related party transaction (and, like Annette says, dividends as well) - divis = full accounts only.

    Regards
    Steve

    I'm surprised to read that dividends (under the related party transactions section) only need to be disclosed in full accounts- the directors at my current firm have also disclosed this in the abbreviated accounts as well. And, yes, they are on very good money.
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    It was very definite that they don't need to be in the abbreviated accounts on the course, I believe because they are an accounting requirement rather than a Companies Act requirement.

    As there's no requirement to put them in the abbreviated accounts, I don't!
  • imeldabyeimeldabye Well-Known Registered Posts: 147
    thanks to you all. :001_smile:
  • Steve CollingsSteve Collings Experienced Mentor Registered Posts: 997
    reader wrote: »
    I'm surprised to read that dividends (under the related party transactions section) only need to be disclosed in full accounts- the directors at my current firm have also disclosed this in the abbreviated accounts as well. And, yes, they are on very good money.

    The reason is that it is an FRS 8 requirement to disclose dividends not a Companies Act requirement. Abbreviated accounts are not meant to give a true and fair view hence no accounting standards need be applied.

    The requirement to disclose dividends as a RP transactions came about when they repealed the requirement to disclose directors shareholdings in the directors report (from Apr 2007). Once this was repealed it was felt that the related party issues were no longer covered because previously it was felt the user of the accounts could easily calculate the dividend paid to directors in their capacity of shareholders. The requirement is now to disclose dividends to director-shareholders as a related party transaction in the full, but not abbreviated, financial statements.

    Kind regards
    Steve
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    The reason is that it is an FRS 8 requirement to disclose dividends not a Companies Act requirement. Abbreviated accounts are not meant to give a true and fair view hence no accounting standards need be applied.

    The requirement to disclose dividends as a RP transactions came about when they repealed the requirement to disclose directors shareholdings in the directors report (from Apr 2007). Once this was repealed it was felt that the related party issues were no longer covered because previously it was felt the user of the accounts could easily calculate the dividend paid to directors in their capacity of shareholders. The requirement is now to disclose dividends to director-shareholders as a related party transaction in the full, but not abbreviated, financial statements.

    Kind regards
    Steve

    I'm currently reading selected chapters of your iFRS for dummies book (very readable) and in chapter 14 you refer to IAS 24 not FRS 8- any reasons?

    I googled iFRS 8 expecting to see related party transactions and unexpectedly got links to do with operating segments; just to make things worst I use the FRRSE at work.
  • Steve CollingsSteve Collings Experienced Mentor Registered Posts: 997
    Hi

    IAS 24 is the international equivalent of FRS 8 and as FRS is UK-specific there is hardly any reference to UK GAAP in the IFRS For Dummies Book (which is purely IFRS-based) - though UK GAAP accounting treatment is broadly similar as IFRS. IFRS 8 is indeed operating segments, and for INT you need IAS 24, for UK GAAP you need FRS 8 and for the FRSSE you need section 15!

    They know how NOT to keep things simple :)

    BEst wishes
    Steve
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