Finance and Leasing Association welcomes “common sense approach” from HMRC as it gives clarity to VAT treatment of PCPs

An announcement by HM Revenue and Customs providing clarity about the tax treatment of hundreds of thousands of personal contract purchase (PCP) and similar contracts in the UK has been welcomed by the industry. The briefing note follows a European Court of Justice ruling on a legal wrangle between HMRC and Mercedes-Benz Financial Services over its ‘Agility’ product. At the heart of the row was how to interpret at key part of VAT rules on whether PCPs are a supply of goods or services.

Finance and Leasing Association welcomes “common sense approach” from HMRC as it gives clarity to VAT treatment of PCPs

Mar 01, 2019

An announcement by HM Revenue and Customs providing clarity about the tax treatment of hundreds of thousands of personal contract purchase (PCP) and similar contracts in the UK has been welcomed by the industry. The briefing note follows a European Court of Justice ruling on a legal wrangle between HMRC and Mercedes-Benz Financial Services over its ‘Agility’ product. At the heart of the row was how to interpret at key part of VAT rules on whether PCPs are a supply of goods or services.

Grant Thornton launches AI-powered leasing standards tool

Accountancy firm Grant Thornton has launched a web-based application called LeaseCom Analytics (LCA), which is designed to help public and private companies adjust to the Financial Accounting Standards Board’s (FASB’s) new lease accounting standard. It combines advanced analytics and machine learning to automate the process of maintaining a complete, accurate picture of a company’s lease portfolio. Grant Thornton developed LCA specifically to help clients as they move beyond the initial ASC 842 compliance deadline.

Grant Thornton launches AI-powered leasing standards tool

Jan 28, 2019

Accountancy firm Grant Thornton has launched a web-based application called LeaseCom Analytics (LCA), which is designed to help public and private companies adjust to the Financial Accounting Standards Board’s (FASB’s) new lease accounting standard. It combines advanced analytics and machine learning to automate the process of maintaining a complete, accurate picture of a company’s lease portfolio. Grant Thornton developed LCA specifically to help clients as they move beyond the initial ASC 842 compliance deadline.

Best practice management of currency under IFRS16

Under IAS17, operating leases result in financial (monetary) obligations being set off in the income statement at the daily rate or, most commonly, the average monthly rate. Under IFRS16, the interest and redemption components are derived from the lease liability and therefore have a 'monetary' face. But in the balance sheet the capitalisation, and in the profit and loss account the depreciation amount of the leased asset, is included in the country/functional currency. Just to illustrate, an example in journal entries is presented.

Best practice management of currency under IFRS16

Jan 17, 2019

Under IAS17, operating leases result in financial (monetary) obligations being set off in the income statement at the daily rate or, most commonly, the average monthly rate. Under IFRS16, the interest and redemption components are derived from the lease liability and therefore have a 'monetary' face. But in the balance sheet the capitalisation, and in the profit and loss account the depreciation amount of the leased asset, is included in the country/functional currency. Just to illustrate, an example in journal entries is presented.

Lease accounting

IFRS16 and the challenge of foreign currencies

Oct 31, 2018

With the introduction of IFRS16 - Leases, issued by the International Accounting Standards Board (IASB), operating leases will be included in the balance sheet no later than January 1, 2019. The dilemma for institutions with operating leases in foreign currencies is to reconsider the currency risks as a result of the new accounting requirements.

BREXIT

Negotiators struggle to build bridges as Brexit looms

Nov 10, 2017

While business leaders in the UK and Europe have stressed the importance of a smooth Brexit transition to protect the economies of both sides, there are signs that negotiators are struggling to find common ground on key issues. As the Brexit deadline of March 28, 2019 approaches, this special report looks in detail at progress from both sides of the negotiating table.

General legal and regulatory

Five F&I compliance headaches – and how automation can help

Jan 21, 2019

Gone are the days when UK car dealerships had carte blanche in terms of selling finance and insurance. While compliance may often be seen as a barrier to business, best-practice can prove to be an enabler – if it’s done right. Sam Marsden, compliance manager at DealTrak, explains the five key regulatory headaches facing dealerships in 2019 – and how automation can help.