Bonus payments

PGM

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

PGM

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

I believe it can be recognised in 2012/13 if it was paid within 9 months of the Year end 2012/13.

Dcollins

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

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