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

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asmaali07
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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
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Marek Muc
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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
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Re: UK GAAP: How is Design fee relating to new office accounted for?

Post by JRSB »

Yes - FRS 102 17.10(B)
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