UK This one is quite a bit more specific...Do Loans count as profit?


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Asset sale and leaseback and recognition as profit.

Essentially, in 2019, a company sold their fixed asset to a commonly owned company for £56.7m.

What I found interesting was that it was classified under "Debtors" and the category was "Other Loans". Unsure where the other £5m arises though.

Other Loans comprised the price paid-NBV. Do we stick this in the P&L- given that there was nothing in the Cash Flow for Profit on Disposal?

This is under FRS 102 btw.
 

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Fidget

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Gains/losses on disposal go through the P&L, although they're a non-cash item because they're basically a depreciation adjustment. The actual proceeds of the sale can either be in a lump sum at the time of the sale, or, as it seems to be in this case, paid at a future date.
 

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