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Post Info TOPIC: Balancing charge when can't determine sale proceeds
Kitty37


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Balancing charge when can't determine sale proceeds
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I have a situation whereby some assets on which AIA was previously been claimed have been sold but as a package with other assets on which AIA was never claimed. As the sale price was for all the assets as a package I cannot determine the exact sale proceeds for the assets for which AIA was cliaimed and therefore am finding it difficult to determine the balancing charge. I considered assuming the sale price to be the same as the NBV in the accounts thereby giving rise to a nil position i.e. no profit or loss?? Has anyone any other ideas?



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Just Fascinating


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Hi Kitty

My thoughts are...

If the sum of all the assets sold equate to the proceeds, then I'd go with your thought.

If they didn't then I would take the proceeds divided by the total NBV of assets sold

and apportion the proceeds to each asset by this calculation.

I'd also be interested to hear how others would handle this situation.

Hope this helps



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gbm


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Just reduce the pool by the proceeds?

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