Circular 162 / 17.3.2007 / LODGE Partnership Accounting Issues

Re: Partnership Accounts to April 2006.

Following discussions with O'Donovan Stewart & Co, ("ODS") accountants to the various LODGE partnerships, and bearing in mind the terms of the partnership agreements specifically in relation to profit sharing it is only possible for each of the seven partnerships to account for capital expenditure incurred by partners in relation to their properties where ODS have been notified and copied with such expenditure.

It is not possible to account for day-to-day non-capital expenditure incurred by partners in relation to their properties as this would be required to flow through the P&L account. This in not to say that partners might not be able to account for these non-capital expenses in their own tax returns but such a move would need to be agreed with their own tax adviser and is not an issue that either CGM or ODS could advise.

Preparation of the accounts is complicated by reason of all the partnership exit activity during the period in question. as soon as they are prepared they will be circulated to all relevant partners.

Clifden Glen Management (2005) Plc.,
Market House, Churchtown, Mallow, Co Cork.

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