I’ve seen this post which relates to transfer of office equipment into a Ltd Co on incorporation, and I’ve used Method 2 for this, using a journal entry.
What about other pre-incorporation expenditure for services which the Ltd Co is now benefiting from, for example a 5-year hosting plan which started pre-incorporation?
I thought that maybe it would be appropriate to treat it as an intangible asset (1100) as per Method 2, with a journal entry based on the pro rata remaining value of the plan, and then depreciate/amortise it over the remaining plan period, but wasn’t sure if this was the correct approach?
Unfortunately we can only provide guidance (as we are not registered accountants), you are better off speaking to your accountant on queries such as this for professional tailored advice.
Hi @QFSteve sure, appreciate that, but guidance is all I’m after… just want to get everything recorded in QF in some sort of sensible manner, and then discuss with accountant and tweak where necessary.
I thought that maybe it would be appropriate to treat it as an intangible asset (1100) as per Method 2, with a journal entry based on the pro rata remaining value of the plan, and then depreciate/amortise it over the remaining plan period.
This is one approach you could take but whether or not it is the correct approach you should take for your situation, I could not comment unfortunately.