Paragraph 24
England, Wales and Scotland
(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.
(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.
Assets included at a fixed amount
Notes on Schedule 4
Textual amendments
- F1
Sch. 4 repealed (6.4.2008) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, art. 8(a), Sch. 2 Pt. 1 (with arts. 7, 12)