Paragraph 35 Excess of money owed over value received as an asset item
(1)
Where the amount repayable on any debt owed by a company is greater than the value of the consideration received in the transaction giving rise to the debt, the amount of the difference may be treated as an asset.Schedule 1Part I
(2)
Where any such amount is so treated:
(a)
it shall be written off by reasonable amounts each year and must be completely written off before repayment of the debt; and
(b)
if the current amount is not shown as a separate item in the company’s balance sheet it must be disclosed in a note to the accounts.