Fixed asset investments are investments the company intends to hold for the long term — most often shares in a subsidiary company, but also other shareholdings or long-term loans. This note explains how the balance sheet figure moved during the year.
What this note shows
Small companies are required by SI 2008/409 Schedule 1 to show the movements on each fixed asset heading. For investments the note shows:
| Printed line | Meaning |
|---|---|
| Cost or valuation at [start date] | The balance at the end of the previous year (the day before this period starts). |
| Additions | Investments bought in the year. |
| Adjustments | Revaluation gains or losses, for investments carried at fair value. |
| Disposals | The cost or carrying value of investments sold, shown as a reduction. |
| At [end date] | The closing balance, which should equal Investments under fixed assets on the balance sheet. |
The table covers the current year only; there is no comparative column.
Where the company holds a subsidiary (or another significant shareholding), SI 2008/409 Schedule 2 also asks for the undertaking's name, country of incorporation, registered office, the class and proportion of shares held, and its aggregate capital and reserves and profit or loss for the year. These go in the additional note using the Subsidiary undertaking template.
This note is not available in FRS 105 micro-entity accounts, which show investments as a single figure.
Where the figures come from
Every figure in the table comes from your trial balance:
| Trial balance account | Editor row | Printed line |
|---|---|---|
| Investment costs b/f | Brought forward | Cost or valuation at [start date] |
| Investment additions | Additions | Additions |
| Investment revaluations | Revaluation | Adjustments |
| Investment disposals | Disposals | Disposals |
The closing balance is the sum of the four. Disposals should be a credit in the trial balance, so they reduce the total. If you have posted an investment to any other account in the investments group, the note will not pick it up and the closing balance will not agree to the balance sheet; move it to one of the four accounts above. See Importing a trial balance.
Completing the note in Tax Optimiser
- Open the period, choose View Accounts, then Notes.
- Select Investments and set Show this note in the accounts to Yes.
- Check the Brought forward, Additions, Revaluation and Disposals figures and the Balance against your records.
- Select Additional note for investments, switch it on and use Use Template to describe any subsidiary.
- Click Save changes.
The editor shows input boxes, but the figures always come from your trial balance; typing in them does not change the accounts. To change them, correct the trial balance.
Wording templates
- Subsidiary undertaking (in Additional note for investments) — the Schedule 2 details of a subsidiary. The period end date is filled in automatically; asks for {{Percentage}}, {{ShareClass}}, {{SubsidiaryName}}, {{Country}}, {{RegisteredOffice}}, {{CapitalAndReserves}} and {{ProfitOrLoss}}. Apply it once and type further subsidiaries below.
Group accounts and the small group exemption
A parent of a small group does not have to prepare consolidated (group) accounts. If it takes that exemption, say so in the accounting policies using the Small group exemption template under Exclusion of prepared consolidated financial statements. The Fixed asset investments policy explains how investments are measured, for example subsidiaries at cost less impairment.
How it appears in the accounts
The note prints the movement table followed by the subsidiary details.
Frequently asked questions
Why can't I change the figures in the Investments note?
They are read from the trial balance each time the accounts are built. Change the Investment costs b/f, additions, revaluations or disposals accounts in the trial balance and the note updates.
What do small companies have to disclose about a subsidiary?
Its name, country of incorporation, registered office, the class and percentage of shares held, and its capital and reserves and profit or loss for the year. The Subsidiary undertaking template covers all of these.
Does a small company with a subsidiary have to prepare group accounts?
No, a small group can take the exemption from preparing group accounts. State it in the accounting policies with the Small group exemption template.
Why is the revaluation shown as “Adjustments”?
The printed note uses the label “Adjustments” for the Investment revaluations account. If the figure is a fair value movement, you can explain it in the additional note.