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Should borrowing costs on a LRBA be written off for accounting purposes in the year they were incurred or shown in the Fund's Balance Sheet and written off over 5 years?
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For Income tax purposes and claiming a tax deduction the borrowing costs should be written off over 5 years if the loan is longer than 5 years. If for some reason the trustees wish to write off immediately in the financial accounts they would still have to add back in the annual return. The borrowing costs not written off in the accounts would show as an asset. An asset will no value I would suggest - so probably best to write off in the accounts.