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

imeldabye

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

Monsoon

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

Newbie

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

Bluewednesday

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 Collings

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

reader

Steve Collings wrote: »

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.

Bluewednesday

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!

imeldabye

thanks to you all. :001_smile:

Steve Collings

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

reader

Steve Collings wrote: »

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 Collings

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