How to record exceptional costs
Question asked by Sam Hopwood 1 month ago
Our greyhound rescue charity has incurred significant costs this year to refurbish the kennels. In line with previous advice from our accountants, they don't want this to go on the balance sheet because it is not a 'new' asset, just in effect a repair. However, our bank have requested when we send them our year end management accounts reports, to split these refurb costs out as 'Exceptional' or 'One-off investment costs' and show them below the normal profit line or EBITDA as investment expenditure. Is there anything already set up in ClearBooks to account for this type of expenditure? Or do I just put the cost in Repairs & Maintenance in the P&L and manually split it out in the report to the bank?