Bonus payments

PGM
PGM Registered Posts: 1,954
This is something new for me..

If you get a bonus in the year 13/14 for performance that relates to 12/13, can you still recognise it as a cost for 12/13?

It was part decided in both years, not finalised and announced until 13/14.

Many thanks :)

Comments

  • PGM
    PGM Registered Posts: 1,954
    Struggling to find definitive information.

    But, I think you can only recognise the income in the year 12/13 (it was paid during 13/14), IF the bonus was a contractual one.

    Because it was non-contractual, I believe it will be recognised in the 13/14 accounts.
  • emma1801
    emma1801 Registered, AAT Licensed Accountant Posts: 56 Regular contributor ⭐ ? ⭐
    I believe it can be recognised in 2012/13 if it was paid within 9 months of the Year end 2012/13.
  • Dcollins
    Dcollins Registered Posts: 179 ? ? ?
    Could it be a contingent liability? Words from an expert here http://www.accountingweb.co.uk/article/accountingwebcouk-guide-provisions-contingencies/522351

    I'd leave it out of 12/13 if no obligation existed at the balance sheet date.
  • PGM
    PGM Registered Posts: 1,954
    Thanks Emma, I also checked with our auditors, it also has to be announced during 12/13 or be contractual in some way. So they say no :(
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