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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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.
I am not sure why you are trying to calculate the deferred tax before preparing the CT computation. That's obviously back to front.
More to the point, why haven't you prepared the tax comp?
It's a relatively small part of the job.
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.