I always find that calculating deferred tax on fixed assets are the most painful exercise:
Do people take a P&L approach or a balance sheet approach?
I use balance sheet approach. In this case I compare carrying value to tax base (capital allowance value).
However in recent years some additions have been none qualifying. So I need to go back and find out which additions were none qualifying and deduct them from the carrying value.
Do anyone have a link to an excel template which can calculate deferred tax for fixed assets including considering:
Special rate pool, IFRS16 Leasing (including equity movement on transition accounting), Capitalised revenue expenditure, Rate changes etc.
I cant explain how painful calculating deferred tax on fixed assets are!