I've been asked for a quote by a new client for carrying out his bookkeeping which includes Derivatives. I have only ever covered derivatives in my CIMA studies, and have read the new tax rules which make them sound a lot more straight forward than they originally where. My question is, has anyone ever accounted for Derivatives as a bookkeeper, any issues I may face? or any advice you would offer before I accept the work?
Hi Nicola There are many different forms of derivative, think it might be best if you find out what sort it is first. Also are you bookkeeping to TB or actually producing their final accounts, as to be honest this is a very technical area and not one to be entered without a good grounding in the correct accounting standards.
-- Edited by Cheshire on Tuesday 27th of October 2015 10:13:45 PM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ill be carrying out his bookkeeping, month end and year end accounts and calculating his corp tax etc. Also Producing his financial statements. Not sure wether ill be submitting the accounts yet, just in discussions now regarding all of the above, when he asked me about the Derivatives.
The Derivative he's sent me to look at are Contract for difference derivatives, I double checked the new rules regarding these on HMRC website and they are now accounted at Fair value in the balance sheet which is a lot more straight forward than when I studied them .
Its just never cropped up in my work before, So I've never had to account for them in real life (only in CIMA studies )
Just wanted to see if anyone else has processed these, and wether they have encountered any issues?
