SCHEDULES
F1F1 SCHEDULE 8
PART II ACCOUNTING PRINCIPLES AND RULES
Section B Historical Cost Accounting Rules
Rules for determining particular fixed asset items
F220
1
Notwithstanding that an item in respect of “development costs” is included under “fixed assets” in the balance sheet formats set out in Part I of this Schedule, an amount may only be included in a small company’s balance sheet in respect of development costs in special circumstances.
2
If any amount is included in a small company’s balance sheet in respect of development costs the following information shall be given in a note to the accounts—
a
the period over which the amount of those costs originally capitalised is being or is to be written off; and
b
the reasons for capitalising the development costs in question.
F321
1
The application of paragraphs 17 to 19 in relation to goodwill (in any case where goodwill is treated as an asset) is subject to the following provisions of this paragraph.
2
Subject to sub-paragraph (3) below, the amount of the consideration for any goodwill acquired by a small company shall be reduced by provisions for depreciation calculated to write off that amount systematically over a period chosen by the directors of the company.
3
The period chosen shall not exceed the useful economic life of the goodwill in question.
4
In any case where any goodwill acquired by a small company is shown or included as an asset in the company’s balance sheet the period chosen for writing off the consideration for that goodwill and the reasons for choosing that period shall be disclosed in a note to the accounts.
Sch. 8 repealed (6.4.2008) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, art. 8(a), Sch. 2 Pt. 1 (with arts. 7, 12)