Called to account

Article Abstract:

It has been predicted the introduction of the FRS 12, "Provisions, Contingent Liabilities and Contingent Assets" accounting regulation may result in companies no longer committing to 25 year leases on property. The new regulations will compel companies to admit to their liability for outstanding leases. Companies have been able to hide their liabilities in the past. They will have to show they have accounted for their lease commitments which may swallow up any profits for the year in question. The FRS 12 is due to be introduced, into the UK, during Mar 1999.

Standards, Commercial leases

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End of the quick fix

Article Abstract:

The UK Financial Reporting Exposure Draft 17 will introduce a measure to make profits from the sale of company property part of a statement of gains and losses. Any gains or losses made from reevaluation will also be recorded in the statement of gains and losses. Some companies have used the disposal of property to boost profits, particularly when they are low. Money made from the sale of property was recorded in a company's profit and loss statement. Recording additional pre-tax profits also increased equity earnings.

Accounting Methods NEC, Profit, Profits, Real estate, Real property, Corporation reports, Company reports

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Task force puts a value on incentives

Article Abstract:

The issue of rent-free periods when leasing property is discussed with reference to its use as an incentive and its assessment for accounting purposes. A United Kingdom accounting authorities' task force has provided guidelines on this matter.

Rents (Property)

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