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Certain type of shares such as redeemable preference shares are required to be disclosed as a liability rather than equity (for periods beginning on or after the 1.1.05)
To facilitate this change, the following new account codes have been introduced:
874 Preference shares - less than 1 year
880 Preference shares - 1 to 2 years
886 Preference shares - 2 to 5 years
892 Preference shares - over 5 years instalments
898 Preference shares - over 5 years non-instalments
435 Preference shares - Dividends
All postings have to be made to the respective sub accounts to match the relevant share type and not to the main accounts. For further details on the individual account codes please refer to the Product help. Select Help | Help, from the main Help screen select Chart of Accounts, select the chart you wish to view.
Details regarding the share type should be entered under data screens or within the share register as before. Share types marked as non-equity will appear within liabilities, the equivalent posting should be made to the new account codes.
Make journal postings to the liability account codes (above) for the respective share types in the current year.
Post preference dividends to the account within interest payable. Use account 435 with sub accounts for the relevant share types.
On the balance sheet, postings to non equity shares will be shown under creditors with a note reference.
Within the notes to financial statements there will be a separate note for the non-equity shares following the creditors note. Alternatively if there are loans and the company is medium or large the share capital details will appear within the loans note..
If Small Company claiming FRSSE, full Disclosure is available on Edit | Data Screens | Small Company | Financial Statements | Interest on bank loans etc to show the dividend payment with the profit and loss note.
There is also an additional/replacement note data screen available to make changes to the standard note generated by the system under:
Edit | Data Screens | Notes to Financial Statements | Balance Sheet Items | Creditors | Loans and Overdrafts | Preference Shares