UK Capitalising Asset in next accounting period

[enzo]

Hello

I have come accross several invoices that contain purchases in the 2011 accounting period that should have been classed as assets (PC's etc) but were missed in 2011.

My line manager does not want to capitalise them now in the 2012 accounting period as the 2011 P&L is closed and does not want to create a credit on the 2012 P&L - but i was wondering if this was the most appropriate treatment seeing as we still have the PC's and they will continue to be used for several years, so in my view i would capitalise them.

The values aren't large (over aset capitalisation threshold but only a few £'000 in multimillion turnover business) - just wondered which point of view was most appropriate

Many thanks

 

[Cheaper Accountant]

I would agree with your manager in that I don't think the transactions are material enough for you to restate the prior year accounts.

You could raise this with your auditor and see what their view is?