I agree with your accountant and I think so would the Revenue. If he gave you a certificate saying you were solvent and you subseqently went to the wall, then the creditors might have something to say about it.
In ordinary companies, the audit cert says something along the lines of "the company is dependent on funding from directors who have indicated that they will support the company..." Would that satisfy him/
Don't inject ordinary share capital as it will be very difficult to get out.
I presume it's a limited company, although I note you use the word "I took out an overdraft"?
Can you refund your salary? This would put cash back in and possibly get a tax refund.
Consider putting in redeemable preference shares instead of ordinary share capital, so that when the company is profitable again, it can refund the capital.
I'm an estate agent/valuer. Most income is from valuations (banks/probate/divorce cases) rather than property sales in the last 12 months.
I agree with your definition of solvency, but how to convince the accountant?
My earlier defination is correct for company law, however this is a different matter, this is because you hold client funds a certificate has to be submitted under the Auctioneers and House Agents Act 1947 (Accountants Examination and Certificate) Regulations 1968.
However on the ACCA technical Factsheet 63, the following guidelines are given on Solvency
1. "an accountant shall not issue a certificate....if at the time of his examination matters come or have come to his notice from which it appears to him that the auctioneer or house agent is not solvent".
2. One opinion on the meaning of "solvency" is that it means the ability of the firm to meet their debts as they fall due and not just an excess of assets over liabilities.
My earlier defination is correct for company law, however this is a different matter, this is because you hold client funds a certificate has to be submitted under the Auctioneers and House Agents Act 1947 (Accountants Examination and Certificate) Regulations 1968.
However on the ACCA technical Factsheet 63, the following guidelines are given on Solvency
1. "an accountant shall not issue a certificate....if at the time of his examination matters come or have come to his notice from which it appears to him that the auctioneer or house agent is not solvent".
2. One opinion on the meaning of "solvency" is that it means the ability of the firm to meet their debts as they fall due and not just an excess of assets over liabilities.
One opinion on the meaning of "solvency" is that it means the ability of the firm to meet their debts as they fall due and not just an excess of assets over liabilities.
I would think that a fundamental requirement of solvency is that the company's assets exceed its liabilities. But this statement is saying that this is required but not enough.
I would think that a fundamental requirement of solvency is that the company's assets exceed its liabilities. But this statement is saying that this is required but not enough.
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