UK Property as fixed asset


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Hi all,

My accountant recently went out of business and I am reviewing his numbers.

I am the director of limited company in England which owns one property for letting.

In my balance sheet I have a fixed cost of £192,918 which my accountant said is "cost of the property plus all associated fees paid on purchase. " However I am finding it very difficult to reconcile this number.

From my solicitor completion statement:
£​
purchase price
185,000​
solicitor costs (inclusive of VAT and transfer fees)
858​
land registry fee to register ownership
95​
companies house charge registration fee
23​
land registry search fee
3​
land charges search fee
2​
local authority, environmental, drainage search fees
209.71​
stamp duty land tax
6750​
service charges advanced payment
742.81​
landlord's share transfer fee
90​
landlord's certificate of compliance fee
180​
landlord's notice of assignment and charges fees
180​
Total
194,133.5
net mortgage advance
138,702​
balance required to complete
55,431.52​

From my Mortgage offer:
£​
advance
138,750​
fees added to balance
product fee
693.75​
insurance contingency fee
25​
Fund transfer fee
25​
total approved loan
139,493.8​
Advance being released to solicitor on completion
138,750​

During the purchase I also had to pay different solicitor to advise on the guarantee. This was £120 (inc. VAT)

Understandably the service charge would not be included in the total, but without this I arrive at £193,390.7 or £193,510.7 including the £120 solicitor advise.
Any advise you could give would be highly appreciated.

Thanks!
 
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FRS 15 states that all costs incurred in bringing a fixed asset to its present state and location should be capitalised. Other than the service charge I am struggling to see what else from the completion statement would not be included?
 

Fidget

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The difference is £1216 (£194,134 - 192,918), and by the looks of it is made up of:

companies house charge registration fee23
service charges advanced payment743
landlord's share transfer fee90
landlord's certificate of compliance fee180
landlord's notice of assignment and charges fees180

As an aside, FRS15 doesn't exist anymore. It's FRS102 now.
 
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