UK GAAP: How is Design fee relating to new office accounted for?

Topics related to universal accounting principles and best practices, local GAAP, audit, laws and regulations affecting financial reporting, and other financial reporting topics.
This is also the appropriate forum for beginners to ask any questions, even if they pertain to IFRS.
Post Reply
asmaali07
Posts: 1
Joined: 27 Oct 2021, 11:55

UK GAAP: How is Design fee relating to new office accounted for?

Post by asmaali07 »

Hi All,

We have recently just signed a lease for a new office which we're due to move into starting from Jan 22. As it's a new building, we are fitting out the building ourselves. We will be incurring design fees of circa £50k relating to our future office leasehold additions. We prepare our accounts under FRS 102-1A. How would you account for costs associated with the design of the new office please?

Any help would be greatly associated.


Many thanks,
Asma
User avatar
Marek Muc
Site Admin
Posts: 3228
Joined: 15 Oct 2018, 17:21
Contact:

Re: UK GAAP: How is Design fee relating to new office accounted for?

Post by Marek Muc »

Under IFRS, such costs are generally recognised as separate assets - referred to as leasehold improvements
JRSB
Trusted Expert
Posts: 1309
Joined: 01 Mar 2020, 01:10
Location: UK

Re: UK GAAP: How is Design fee relating to new office accounted for?

Post by JRSB »

Yes - FRS 102 17.10(B)
Post Reply