This asset on CFF is a long-term asset and is normally land and buildings. You may change the name to something else in the opening trial balance and it will change. The asset is linked to a mortgage bond or a form of long term loan payable. If you are to acquire an asset you can enter how you are going to pay for it either on a long-term loan like a mortgage bond or for cash.
Financing: Mortgage / Cash
Enter the cost of Land and Buildings including VAT in the month that you spend the money. If you purchased on mortgage loan then enter the amount in the mortgage column. If the purchase is for cash enter the full amount of the payment in the cash column.
Mortgage Installments
Enter the total of all installments here.
Land and Buildings Acquisition VAT Rate
Enter the VAT rate applicable and the VAT will be calculated automatically. If there is no VAT deduction allowed, add the VAT to the cost figure and set the VAT rate to zero.
Land and Buildings Disposal
Enter the actual amount received on disposal of the land and buildings including VAT in the month that it was received.
Land and Buildings Cost
Enter the original cost of the land and buildings sold.
Land and Buildings Accumulated Depreciation
Where a fixed asset is disposed of, enter the amount of the accumulated depreciation of the fixed asset to the date of disposal.
