Accounting rules ‘give firms an opportunity’

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Lancashire companies have a “one-off” opportunity to increase the value of their business assets due to an imminent change in UK accounting rules.

Chartered surveyors Sanderson Weatherall say that on January 1, current practices for many businesses will change to the new Financial Reporting Standard (FRS) 102. When this happens, it presents the opportunity for companies to use the principle of “fair value” to revise the balance sheet value of their property, plant and equipment assets.

Sanderson Weatherall partner, Roy Tubman, explained: “When companies transition to FRS 102, there is a one-off opportunity for them to revalue their assets at fair value. “Essentially, this allows businesses to effectively rebuild their asset registers, particularly where machinery has been written down to zero but is still a valuable part of the company’s assets.”