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Post Info TOPIC: Negative Net Book Value
Silly Digits


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Negative Net Book Value
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Hi

Have taken over accounts from an accountant and looking at the Assets bought forward from the previous year.

Have worked out that they have wda motor vehicles 25% year and 15% plant and machinery. 

There is one thing confusing me.

Computer equipment there is no cost but they have depreciation last year but the balance c/f is a negative net book value.

The depreciation last year for plant & machinery adds this amount on to work out the depreciation.

Help!

 

 

 

 

 

 

 



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Taylor Accounting


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Hi Silly Digits

If there is a WDA this normally refers to Capital Allowances. Is the client an individual?

If there is a value for depreciation in the accounts under Computer Equipment no cost value to put it against it could have been posted incorrectly.

I would go back to the previous accountant and ask for a breakdown of either (1) Capital Allowances Schedule (2) The Fixed Assets Schedule. This should be given to you as part of the hand over.

Hope this helps.

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gbm


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Silly Digits wrote:

Computer equipment there is no cost but they have depreciation last year but the balance c/f is a negative net book value.

The depreciation last year for plant & machinery adds this amount on to work out the depreciation.

Help!

 It could be that the cost was included in a different asset category.  As suggested, you need to go back to the previous accountants to clarify.



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Anderson Accountancy


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Yes, get an explanation from the prior accountants and ask for Fixed Asset Schedule (which should show cost, depreciation and NBV) and as you have mentioned WDA (which refers to Capital Allowances) ask also for the CA Schedule too. This will always be different to the fixed assets which is used in financial accounting whereas CA's is used in computing allowances on assets based on HMRC's "rulebook".

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Anderson Accountancy

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