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This client screen is used for Limited companies.
It can be found in:
Edit | Data Screens | Notes to Financial Statements | Accounting policies | Alternative Accounting Policies | HP/Leasing
There are four choices for the hire purchase/leasing policy:use the
standard; add to the standard; replace the standard or omit the policy.
If the field on the Selection of Accounting Policy screen is:
ticked and no entries made on this screen, the standard policy will be generated worded as follows:
If Accounts Production detects postings in the fixed asset leased groups the following standard policy will be produced.
Assets obtained under hire purchase contracts or finance leases are capitalised
in the balance sheet. Those held under hire purchase contracts are depreciated
over their estimated useful lives or the lease term, whichever is the
shorter'.
If postings are detected in the hire purchase/leasing creditor accounts ((Profit and loss accounts 50, 157, 191, 226, 260, 316, 350, 51, 158, 192, 227, 261, 317, 350) if using the ELTD chart, 717 to 732 if using the IRIS chart) the following line will be added:
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.
The following line is included if:
the data screen Operating Lease Commitments is completed if using the ELTD chart
postings are detected in accounts 733 to 740 regarding operating lease commitments if using the IRIS chart.
Rentals paid under operating leases are charged to income as incurred.
ticked and entries made on this screen. Text typed here will be used in the notes either added to or instead of the standard policy, depending on whether a tick is in the replace box.
left blank, no accounting policy will be produced.
This policy will only be generated if postings have been made to the Tangible fixed assets lease/HP accounts:
Click here to see information about generating a table within the notes.
Use this option to view or print any report without leaving this screen.
IRIS will return to the Hire Purchase/Leasing policy screen when you exit the report option.
To view the notes only enter NOT/NOI in the Report/Document field.