Deferred Tax adjustment on FRS 102 accounts

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I have a set of December 2016 year end accounts that are going to be first year FRS 102 section 1A.

I have no payroll, no investment property – however, the only adjustment I feel I might need to include is deferred tax.

I’ve not really touched this before and could use some assistance.

So far – I have taken the NBA as at 31/12/2014 and 31/12/2015, deducted the WDV as at these dates and worked out the tax on that figure pro-rating the tax rate over the dates.

However, I need to take the NBA and WDV as at 31/12/2016 – but the tax comp hasn’t been prepared – I know the NBA as at 31/12/2016 from my accounts and have assumed that the WDV is nil given it is all eligible for AIA.

Could someone confirm I am doing this correctly? Or point me in the direction of an example?

Replies (7)

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RLI
By lionofludesch
14th Aug 2017 11:07

Surely you've been including Deferred Tax before now so there's no change here.

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By Balboa120
14th Aug 2017 11:19

I think because this is a small company deferred tax was never required to be put in. It's only now that FRS 102 has come in that it needs to built in?

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Replying to Balboa120:
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By rhino83
14th Aug 2017 12:33

No FRSSE 2008 (and 2015) required deferred tax to be recognised in the accounts.

If it was not material then it is acceptable to leave it out, but otherwise it should have been included.

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Replying to rhino83:
RLI
By lionofludesch
14th Aug 2017 13:16

My understanding too.

Nothing's changed.

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By johngroganjga
15th Aug 2017 06:26

I am not sure why you are trying to calculate the deferred tax before preparing the CT computation. That's obviously back to front.

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Replying to johngroganjga:
RLI
By lionofludesch
15th Aug 2017 07:33

More to the point, why haven't you prepared the tax comp?

It's a relatively small part of the job.

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Replying to lionofludesch:
By johngroganjga
15th Aug 2017 11:00

Perhaps not got round to it yet. For all of us the preparation of the tax comp comes towards the end of the process of preparing a company's accounts. But unless we have spent our entire careers in blissful ignorance of the need to include deferred tax in companies' accounts, as the OP seems to have, we will know that is is pointless trying to calculate the deferred tax until we know what the current tax liability is.

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