Domain names. Expenses??

[olebean]

Originally Posted by grandin

cause you don't have ownership rights then any price is merely paid on a whim...no different to special phone numbers

You have "control" under FRS10 that is one of the criteria..

[grandin]

can you talk in non jargon please....what is a frsdfddd10

[developdomains]

Originally Posted by grandin

cause you don't have ownership rights then any price is merely paid on a whim...no different to special phone numbers

exactly, your renting the space

[Jeewhizz]

Originally Posted by grandin

can you talk in non jargon please....what is a frsdfddd10

FRS10 sets out the principles of accounting for goodwill and intangible assets. Its aims are to ensure that:

* Capitalised goodwill and intangible assets are charged to the profit and loss account as they are depleted.
* Sufficient information is disclosed to enable users of the financial statements to determine the impact of goodwill and intangible assets on the financial position and performance of the entity.

http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD30510.htm

[olebean]

Originally Posted by Jeewhizz

FRS10 sets out the principles of accounting for goodwill and intangible assets. Its aims are to ensure that:

* Capitalised goodwill and intangible assets are charged to the profit and loss account as they are depleted.
* Sufficient information is disclosed to enable users of the financial statements to determine the impact of goodwill and intangible assets on the financial position and performance of the entity.

http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD30510.htm

It doesn't just cover depletion, if covers areas where intangible assets can be re-valued upwards providing fair market valuation can be achieved and there is longevity...

[Jeewhizz]

I didn't understand all that.

That's why I pay an accountant to do all this for me.

[grandin]

impossible:- fair market valuation can be achieved and there is longevity

....based on a feeling

.... too little sales and each one is too unique

..... value is based on what you think you can do with it not what it actually does i.e. when you purchase there is nothing but air

it is only with a revenue stream can you then calculate a real value

Lee

[olebean]

Originally Posted by grandin

impossible:- fair market valuation can be achieved and there is longevity

....based on a feeling

.... too little sales and each one is too unique

..... value is based on what you think you can do with it not what it actually does i.e. when you purchase there is nothing but air

it is only with a revenue stream can you then calculate a real value

Lee

Interesting comments from an individual that in involved in houses.. Totally disagree! If you look at the historical context of valuing house there are huge similarities..

[profrec]

Was debating about getting my text books out but can't be bothered, its been a long day.

I agree with Olebean on this.

Domain names would be treated in the same way as brand names and held as an asset if bought at reg fee they should just be expensed, irrelevent where they are expensed to.

You can only capitalize and show as an asset on the balance sheet at the value you purchased them, you cannot show a domain increasing in value this is the same principle as brand names.

If held on the balance sheet they would be classed (in the books) as belonging to you rather than being rented by you because you hold the risk of ownership. For example you are entitled to renew them first and keep them or if the value drops you take the risk of losing money. This is substance over form principle.

[retired_member16]

Keep it hush-hush, pay in cash were possible, keep things in your wifes name and have an off shore trust.