UK GAAP - Capitalise Startup costs

[swilson2006]

Hello

I was speaking to my partners whom had an issue with us writing off startup costs in relation to our setup in the first year.

One of them said that they were certain that we could capitalise the startup costs and amortise them over a number of years.

The fees are for solicitors etc needed to help draft our legal agreements etc.

Can someone point me in the right direction of which accounting standard applies to ensure I treat correctly in our accounts?

It would be helpful to know what the time frame should be for amortisation also.

Thanks very much in advance.

Best etc

Stuart

[RAL]

Here is a link (http://www.frc.org.uk/asb/technical/standards/accounting.cfm) to UK accounting standard and ssap.

[RAL]

Deleted. Somehow I got error messages thought first time did not post.

[swilson2006]

Yes I found that place too.

It would however, be very helpful to have both the specific standard which details the treatment of startup costs and what time period these should be amortised over.

It would be helpful if someone could point me in the right direction on this.

Kind Regards,

Stuart

[RAL]

Yes I found that place too.

It would however, be very helpful to have both the specific standard which details the treatment of startup costs and what time period these should be amortised over.

It would be helpful if someone could point me in the right direction on this.

Kind Regards,

Stuart

Well you need to have read on FRS 15 and UTIF 24 Para 4. The abstract recommend that item be expensed in the profit and loss account unless they meet the criteria for recongnition as assets under other accountin standards. Such as FRS 15, FRS 10 "Goodwil and intangible assets" or SSAP 13 "Accounting for research and development.

I would say, you can not capitalise the start up cost.