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- October 27, 2018 at 10:02 am #479917
Review of evidence on charges in statutory books and by company search
Sir what charges are they talking about
Examine invoices received after year end,orders,and minutes for evidence of capital commitments
Sir kindly explain which capital commitments they talk about?October 29, 2018 at 7:06 am #480102In the UK, for example, a fixed charge over a company’s assets must be duly registered and this would be documented in the company’s register of charges (a statutory register) and show in a company search. As this is assumed knowledge of F4-ENG it would not be specifically examined but would be relevant when considering whether a company’s rights to its assets might be other than absolute (e.g. a company cannot sell property which is charged to a bank, say, without the bank’s permission).
Capital commitments are just that – commitments to acquire capital items (non-current assets). Disclosure of this is encouraged, but not required, under IFRS, but may be a required disclosure under company legislation (as in the UK). This is useful information to users (to see what investment has been committed to). - AuthorPosts
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