Wanted: Domain Appraisal Asset Values & Company Accounts

[IanTurner]

Okay maybe not the right place to post but couldn't find anywhere more appropriate.

How do you assign asset values to you domains to put on the company books - assuming you are running as a Limited Co.

p.s. There are some tax implications to this as increasing the book assets increases the balance sheet and can lead to increased corporation tax. If anyone has any information on this, related to domains in particular, it would also be appreciated.

 

[olebean]

How do you assign asset values to you domains to put on the company books

The choice of charging an intangible assets to the profit and lose account are limited by the determination of the economic life of the asset (over 20 years or under 20 years), whether the asset was internally or externally generated, ascertainable value, method of amortisation or impairment and reviews.

Domain names do not have an economic life over 20, nor do they have recognised ASB ascertainable value. Amortisation or impairment at "cost" are your only options..

 

[bb99]

Okay maybe not the right place to post but couldn't find anywhere more appropriate.

How do you assign asset values to you domains to put on the company books - assuming you are running as a Limited Co.

p.s. There are some tax implications to this as increasing the book assets increases the balance sheet and can lead to increased corporation tax. If anyone has any information on this, related to domains in particular, it would also be appreciated.

"It depends"

It depends on what your company does and what the domain name does for your company (and to some extent your long term plans for it).

If you read my post here this will give you an idea of things.

In terms of revaluing the domain name if it's on your balance sheet, you can't just go revaluing things willy nilly because you think their value has gone up

Sure there's recognised ways of dealing with, for example, land and buildings when their value goes up, but you can't do the same with intangibles like domain names. There are only a few circumstances that I can think of where you could revalue a domain name upwards if it was sat in your balance sheet, but I'm no expert.