I own a micro business that's been meandering along for 10 years. I accept I should know the answer to this, but I've forgotten
The company has fixed assets of 100
Total assets less current liabilities 100
Creditors: amounts falling due after more than one year (£441,378)
Total net assets (liabilities) (£441,278)
Capital and reserves (£441,278)
The company has no external creditors (doesn't owe any external debt, no outstanding invoices) and has never invoiced anything. I've been creating intellectual property, but no value has been shown in the accounts yet (there is value there).
Unfortunately, following health issues I'm having memory problems, and I'm trying to figure out a couple of basics:
1) I need to understand whether my company could be viewed as being insolvent.
2) I think that the £441,278 liability is primarily made up of unpaid salary to me. Given the figures above, is this feasible, even if it's not the best way to report this?
The company's liabilities outweigh it's assets, but those liabilities aren't immediately due - they're due after more than one year. So, the company would become insolvent if no other changes take place before the liabilities are due to be met.