I have a client (small Ltd Co) who has made a trading loss (after deduction of AIA) in their first year of £11,016. Due to the AIA claim I have calculated a Deferred Tax Liability of £524, (NBV £2621 tax WDV £0).
Is the following disclosure in the accounts sufficient:- (FRSSE 2008)
Taxation on Ordinary Activities - There is no charge to corporation tax on the losses arising in the year. The company has losses amounting to £11,016, not adjusted on the deferred tax accoun, whcih are available to offset against future trading profits.
Deferred Taxation - The elements of deferred taxation, which result in a nil balance at the end of the year are as follows:-
Excess of taxation allowances over depreciation on fixed assets £524
Tax losses available (£524)