Share this content

Accounting for R&D tax credit

Accounting for R&D tax credit prior year adjustment

Didn't find your answer?

Looking for help in reporting an R&D tax credit prior year adjustment under FRS102. 

Do you have to provide a note to the accounts to explain the prior year adjustment to the corporation tax charge  ? 



Replies (2)

Please login or register to join the discussion.

By daniel_
19th Dec 2019 10:33

Corporation Tax provision is an accounting estimate.

FRS 102 10.18 says that:
An entity shall disclose the nature of any change in an accounting estimate and the effect of the change on assets, liabilities, income and expense for the current period.

10.15 says:
Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.
So it's not a prior year adjustment and you should not restate prior year comparatives.

Thanks (0)
Replying to daniel_:
By L Haldane
19th Dec 2019 10:55

Thank you for your response.

I already know that the R&D tax credit adjustment is to be reported within the current year's accounts with no restatement of the prior year comparatives ( I appreciate that I didn't make this clear in my original question).

What I'm not sure about is whether I need to include a note in the accounts to explain the 'adjustment to prior year tax charge' included within the current year's tax charge as this will be a material figure within the context of the current year's accounts.

Thanks (0)
Share this content

Related posts