Dealing with Assets

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A Liquidator of a company reports periodically to Registrar of Companies the value of Assets available for realisation and the amounts achieved in realising those Assets on the company’s abstract of receipts and payments.  For example, in a Liquidation, this will be presented as Form 4.68 in conjunction with the progress report.

To correctly reflect amounts the receipts and payments, you will be required to enter, revalue, and realise Assets using the Asset Register.

Although it is possible to code transactions directly to asset holding accounts, you may not allocate these transactions against an Asset.

We will see that the system tracks different information for different asset types.

Asset Types

The system asset categories (“Asset Types”) directly relate to the categories specified on the Statement of Affairs (“SoA”) and abstract of receipts and payments.  One Asset Type may have many asset holding accounts.  When adding an Asset you specify the applicable asset holding account.

We will look at adding the following Asset Types:

  • Cash at Bank / Cash on Hand at appointment
  • Accounts Receivable (Pre-Appointment)
  • Assets subject to Lease / Chattel Mortgage
  • Interests in Land
  • Plant and Equipment
  • Contingent Assets
  • Other Assets
  • Stock / Inventory
  • Work in Progress
  • Assets subject to Fixed Charges

Asset holding accounts

Asset holding accounts are the financial accounts associated with the Asset.  When adding an Asset, the system creates a journal to the selected asset holding account.

SoA Assets

For Assets to appear in the SoA, ensure each asset is marked as a SoA asset (see below).  Once the SoA is finalised, you will not be able to add SoA Assets unless you undo the SoA finalisation.  See the chapter “The Statement of Affairs Wizard” for more information in this regard.

Dealing with assets

This section demonstrates how to maintain and realise an insolvent entities' assets.

In realising assets, you will discover that multiple assets may be realised as part of one asset sale.  We will look at this event in a sale of business scenario and allocating costs to a sale.