# Companies Act 1985, Paragraph 35: Excess of money owed over value received as an asset item

Extent: E+W+S

(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.

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Source: https://www.legislation.gov.uk/ukpga/1985/6/schedule/9/paragraph/35 (the official version)
Page: https://openlegislation.uk/companies-act-1985/schedule-9/paragraph-35
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.