Limited Company - ELTD

 

Fly Sheet

Company Information

Directors Report

Tangible Fixed Assets

Notes to the Financial Statements

General

 

  

 Fly Sheet

You will need to set the following alias:

FLY = FLO

To set the alias at client level (for one client only) select Edit | Report aliases

To set the alias at chart level (all clients attached to a specific chart) select Setup | Accounts chart | Amend chart, select the chart the client is using, select Output report (FDF) - chart aliases.

 


 

You will need to be logged in as MASTER. Select Setup | Report options | Flysheet window position. See the help screens in each individual option for further help.

 

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Company Information

The company information page will only list directors in office at the time of signing the accounts.

If there are directors in office at the time of signing that are not appearing, check the following screens:

Edit | Data Screens | Directors | Directors Changes Since Year End, check that you only have directors entered on this screen that have actually left after the year end and not during the year, and similarly that directors entered here were actually appointed after the year end and not during the year.

Also check that the directors have not had an end date entered incorrectly.  To check this, go to Edit | Directors/Secretary and remove any incorrect dates.

 


 

Select Client | View and enter the number on the Basic Tab.

 


 

Select Edit | Data Screens and go to Company Information | Country for Legislation and enter:

E for England, Wales and Scotland

N for Northern Ireland

G for Guernsey

J for Jersey

 

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Directors Report

For the section headed 'Directors' to appear on the Directors' report, the following will need to be considered:

 


 

For the Directors' shareholdings to appear in the Directors' report, the following will need to be considered:

The section headed 'Directors' must be included in the Directors' report.

To ensure this is appearing:

 

If the section headed 'Directors' in the Directors' report is being displayed and the directors shareholdings are not, there are two screens that need to be completed:

Select Edit | Shareholdings, select a director then OK. Select the year by clicking the magnifying glass where it says at year/period end and enter the amount of shares held by the director.

Select Edit | Data Screens | Company Information | Share Capital, select the class of share capital. This screen must be completed for the current year, in particular the number issued field must be completed.

If you are using the Share Register these screens will not be available, make sure all the correct information is entered into the share register instead. Select Edit | Name, basic details and business address then Shares.

Also check that postings have been made to the issued share capital accounts, that is, 966/1, 966/2 or 966/3.

 


 

The above items will be omitted from the directors report if advantage is being taken of the small company exemptions. To disclose the above, select Edit | Data Screens | Small Companies | Report of the Directors, select the items you wish to disclose.

 


 

Select Edit | Data Screens | Report of the Directors | Auditors, leave the field provided blank to omit the standard paragraph or enter an alternative paragraph on the screen.

 


 

Go to Edit | Share Register | Events | New | Share Issue/Bonus Issue/Rights Issue and in the Takeup screen when entering the relevant shareholder taking up the shares, select the Non-Beneficial option. This shareholding will be shown as a Non-Beneficial holding on the Directors' Report for the relevant director.

 

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Statutory Profit and Loss Account

None of the above are required where accounts are prepared in accordance with the FRSSE (Financial reporting standard for smaller entities).

If you do not wish accounts to be prepared in accordance with the FRSSE, select Edit | Data Screens | Small Companies | FRSSE, leave the field provided blank.

 


 

The example given is a typical Prior year adjustment:

The Prior Year Adjustment needs to restate the comparative figures, therefore, an amendment needs to be made in the comparative posting entry.

A company discovers it's sales have been overstated in the previous year by £100,000. This being due to a mistake regarding trade debtors.

The error needs to corrected in the comparative year. The following journals will have to be applied:

Dr Sales  1 100,000

Cr Trade debtors 625 100,000

In the current year the adjustment needs to be shown as a PYA. Do not rerun opening balances. The opening balance on account 968/1 remains unchanged and an adjustment is posted to 475 to adjust the opening position on the profit and loss account to the new restated amount. The following journals would be needed:

Dr PYA  475 100,000

Cr Trade debtors 625 100,000

The data screen for prior year adjustments needs completing to add an explanation into the notes. Select Edit | Data Screens | Notes to Financial Statements | Prior Year Adjustments.

 

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Tangible Fixed Assets

In this example we will assume a Motor car costing £10,000 has been disposed.

Credit account 525/3 (disposals - motor vehicles) with the original cost, £10,000

Debit account 525/23 (eliminated on disposal - motor vehicles) with the depreciation to date, say £3,000

Post the balance of the above to account 392/14 (profit/loss on disposal - motor vehicles) £7,000 as a debit

The actual sale proceeds will also be posted to account 392/14 (profit/loss on disposal - motor vehicles) say £8,000 as a credit

The debit entry of the £8000 being to the bank account or debtors for example

This will arrive at the profit on sale of motor car of £1,000.

If the sale proceeds were only £6000, post this as a credit to 392/14. This will leave a loss on sale of motor cars of £1000.

 


 

In this example, we will assume that a Freehold property has been revalued from £100,000 to £120,000.

Debit account 512/5 (Cost - freehold property) with £20,000.

Credit account 970/5 (No description - Revaluation reserve) with £20,000.

Data screens for the revaluation should be completed. These can be found in Edit | Data screens | Notes to Financial Statements | Balance Sheet Items | Tangible Fixed Assets | Revaluation.  

Both the Information and Analysis of Cost or Valuation screens should be filled in.

 


 

This is because the client is taking advantage of the small company exemptions (SI220) if you wish to disclose the fixed assets with their actual group headings, select Edit | Data Screens | Small Companies | Financial Statements, select the Tangible assets and Depreciation accounting policy options, to say that you require full disclosure.

 


 

Do you actually have postings in sub accounts of that account? for example, if you have set up a depreciation rate for account 526, check that you have postings to accounts 526/1 to 526/30 or 526/51 to 526/80. Please refer to the chart of accounts.

Have you entered a start date or end date for the policy? Check that the start or end date entered is relevant to the year for which you are generating the accounts.

 


 

Where the hire purchase agreement for an asset has been completed and the asset is to be transferred to the owned group make the following adjustments, an example for motor vehicles is given:

Debit, for example, 525/9, with original cost.

Credit, for example, 525/59, with original cost.

Debit, for example, 525/79, with accumulated depreciation.

Credit, for example, 525/29, with accumulated depreciation.

If there has been a charge for year posted, then this should also be moved in the same way as the cost and accumulated depreciation.

 

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Notes to the Financial Statements

Check you have 3 years figures posted for share capital, accounts 966/1 - 3

If the share capital was issued in the current or comparative year, (or if this is only the first or second year of trading) you will need to enter this on the client screen, select Edit | Data Screens | Notes to Financial Statements | Movement in Shareholders Funds. Enter the details of the issued share capital in the current year screen. You will need to enter a narrative and a total figure.

 


 

Accounting policies will only be generated if there are postings to the relevant account, for example, the Hp leasing policy will only be generated if postings have been made to the Lease/HP asset groups and the Stock policy will only be generated if there are postings to accounts 568 to 582. You can not add to or replace a policy that isn't being generated, if you wish to enter your own policy use the freeform accounting policy screens.

 


 

There are 2 things to check:

Firstly the share capital needs to be posted to accounts 966/1, for share type 1, 966/2 for share type 2 and 966/3 for share type 3.

The share capital data screen needs to be completed. Select Edit | Data Screens | Company Information | Share Capital | Share Capital 1, 2 or 3. The first five fields need completing:

Class of capital

Nominal value

Authorised number of shares

Authorised value of shares (should be automatic)

Issued number of shares

If you are using the Share Register these screens will not be available, make sure all the correct information is entered into the share register instead. Select Edit | Name, basic details and business address then Shares.

 

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General

Yes, from the main accounts production screen, select Help | Tutorial

 


 

This is because IRIS is taking advantage of the small company exemptions. To use the changed description, select Edit | Data Screens | Small Companies | Financial Statements, select for full disclosure in the field against Intangible fixed assets.

 


 

To produce accounts for a large company, you need to set the following aliases:

$AI=$AS, this will include the phrase "...and are in accordance with applicable accounting standards" in the accounting convention section of the accounting policies note.

$DR=$DL, this will include a phrase in the statement of directors responsibilities to state that applicable accounting standards have been followed.

In addition you must ensure the small company exemptions and FRSSE data screens have been amended to reflect the size of the company.

 


 

Rounding differences can be cleared by either making a journal adjustment to account 280, and the other side of the entry to any other profit and loss account, OR, by changing the nominated rounding account for the client.  This can be changed by going to Posting | Rounding Accounts

The rounding account can also be changed for the whole chart by going into Setup | Accounts Chart | Amend Chart, select the ELTD chart, then go to Rounding error accounts.

 


 

Select Edit | Data Screens | Small Companies, select the appropriate Year start folder | Financial Statements and select the option to produce accounts in accordance with the small companies regime. Select the relevant options if you want full disclosure on the topics, Interest on bank loans, Staff, Intangible assets and so on.

Ensure the option to prepare the financial statements in accordance with FRSSE has not been selected on the data screen Small Companies | Year start folder | FRSSE

 

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