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  • Tax

    Revaluation of property - balance sheet

    With property held in a Ltd. Company, how does one account for an increase in property values in the balance sheet?

    If say your portfolio increases by £50k, is this £50k added to the asset value of the Company and if so, how is this "balanced out".

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    Regards Freelancer

    One of the nicest introductions to the standards that govern this (FRS 102 mostly) that I have seen is this one

    https://www.bdo.co.uk/en-gb/insights/bus...er-frs-102

    There are plenty of others out there

    Essentially, you revalue each year when you prepare the accounts and the valuation change is booked into the P&L with any resultant changes to the tax position being noted as deferred tax

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    Thank you.

    I'd done a bit of googling and FRS 102 came up a few times but your link certainly seems to explain it better than most.

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    Regards Freelancer

    just note that once you revalue on the balance sheet, I believe you have to do it every year... so question is do you need to revalue or can you just leave as is on balance sheet ?

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    AIUI

    There is a general requirement that revaluations are carried out with sufficient regularity to ensure the carrying value does not differ materially from the fair value at the end of the reporting period.

    There is a requirement to disclose when the last valuation was carried out, by whom and by what method

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