Formation Cost workpaper (FCO)

The Formation Cost (FCO) workpaper tracks the cost of establishing a new company or trust, and its amortisation.

Data extraction

●        Amount: the net amount from the formation invoice, matched against keywords Establishment of/for New Trust, Establishment of/for New Company, Set up Cost, Registration of/for New Company, Legal fees of/for new Trust or Company, Professional fees of/for new Trust or Company.

●        Date: from the same invoice, entered in the workpaper's year-end date format.

Amortisation start date

Note: Where formation cost amortisation actually began in a prior year rather than the current one, the earlier start date needs to be entered manually, and this case is always treated as Human Intervention Required rather than assumed from the invoice date. Only when the invoice date genuinely falls within the current financial year does the year-end date get used automatically.

Balance per GL

●        Formation Cost (Balance Sheet): closing balance of the account matching "Formation Cost" (account type Current or Non-Current Assets).

●        Formation Expense (P&L): closing balance of the account matching "Formation Expense" (account type Expenses).

How to access

●        Go to Jobs and open the relevant job.

●        Click the Workpapers icon or navigate to Job Results then Workpapers.

●        Select FCO on the Workpapers Dashboard.