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FRS 5 allows a 'linked presentation' to be used for certain non-recourse finance arrangements. This presentation shows (on the face of the balance sheet) the finance deducted from the gross amount of the item which it is financing. In order to achieve this linked presentation, the following procedure should be followed.
Dr a/c 655 if using the ELTD chart with the gross debts
Cr a/c 656 if using the ELTD chart ( with the non-returnable proceeds
The account descriptions can be amended at the client or chart level, for example to read:
655: Gross Debts
656 : Less: non-returnable proceeds
There is a relevant data screen, which can be found in
Edit | Data Screens | Notes to Financial Statements | Balance Sheet Items | Debtors | Linked Presentation
Description of debt - enter
a description of the debt, which will appear as a sub-heading on the balance
sheet.
Provider of finance - enter a statement about the provider of finance, which will appear in the Notes to the Financial Statements.
If Group 541 Linked presentation: accounts 655 to 656 have been used, the following statement will be generated automatically within the Debtors note, under a 'Linked Presentation' sub-heading.
The directors hereby state that the entity is not obliged to support any losses, nor does it intend to do so.
This would then be followed by the Provider of finance statement (see above).