ICAEW - Directors shares not to include spouses if leaves during year
Article ID
ias-2221
Article Name
ICAEW - Directors shares not to include spouses if leaves during year
Created Date
25th August 2005
Product
IRIS Accounts Production
Problem
It has been queried that the Directors Report should show, at the "Start" of the year the Directors holdings including their Spouses if there Spouse was a director and held shares but left during the year. e.g. In 2004 Mr Director Holds NO shares but Mrs Director holds 1 share. During 2005 Mrs Director Leaves so Mr Director takes control of his spouses shares.
Resolution
After speaking to the Institute it was decided that the Directors Report should show the Director holding his spouses share at the ‘Year End’ but NOT at the ‘Start’ of the year – as follows:
In 2004:
2004 2003
Mr Director – –
Mrs Director 1 1
In 2005:
2005 2004
Mr Director 1 –
Mrs Director leaves during 2005.
This is because at the Start of the year Mrs Director was a director and did hold the shares herself it was only when she left that control was taken by Mr Director.
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