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Product is no longer legal - accounting treatment

MooreAccountsMooreAccounts MAAT, AAT Licensed Accountant Posts: 14
Hi guys,

I have a client in the vaping industry. He's been trading as a sole trader for the past couple of years, before incorporating last July. He mixes various flavours to create blends for sale to consumers.

A loophole he was exploiting has now closed, and as such some of his product is now illegal to sell. It's my understanding that, as none of this is able to be sold, that it now must be written off. Am I right in thinking that?

Thanks in advance!

Answers

  • MooreAccountsMooreAccounts MAAT, AAT Licensed Accountant Posts: 14
    My thoughts exactly. The client asked for further clarification and I had a moment of doubt that I'd missed something!
  • NeillawNeillaw New Member RossendaleMAAT, AAT Licensed Accountant Posts: 272
    Wouldn't be legal high's by any chance?

    Stock should be w/off and not sold under the counter.

    Mickdundee - Perishable Sick?
    lisajayne1
  • MooreAccountsMooreAccounts MAAT, AAT Licensed Accountant Posts: 14
    No @Neillaw - it was vaping/e-liquids for electronic cigarettes. Not too knowledgable on it myself though!
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