I have prepared a set of accounts for an SME which includes a provision for the corporation tax liability for the financial year. The accounts are then reported to the parent company and consolidated into Group accounts before being made available to the owners and investors (14% of the companies shares are listed on the stock market).
An external tax specialist prepares the corporation tax computation and disclosures for the financial statements. This information has been provided one week later than planned.
The parent company are stating that, as the accounts have now been consolidated, no further amendments can be accepted.
As such, should the SME accounts be filed at Companies House containing the provision for corporation tax, so that they reflect the information contained in the Group accounts, or should the actual corporation tax liability be included (and the provision reversed), meaning that the accounts will be inconsistent with the information contained in the Group accounts?