Keith_Lard wrote:Laughable
You you are saying that a company can just get rid of £1.6million pounds worth of assets without having to show an entry for the same figure on the P&L accounts.
Who is the £2nillion debt owed to that Pearson took on? Bank or does he owe the Hetheringtons the amount in unpaid directors loans.
Classic example of someone who doesn't know what they are talking about.
£1.6m of intangible was crearte, not purchased separately.
Dr intangibles
Cr REVALUATION RESERVE.
This reserves goes directly to the equity (shareholders fund) section of the Balance sheet and completely avoids the P/L ac
You are confusing accumulated losses with a debt (liability to pay out). The £2m of losses were not liabilities, but the result of all profits less losses from incorporation to that point in time. Since that point in time those losses have increased by a further £0.7m
It really is that simple.
