Hi guys,
I'm just trying to find my way around preparing accounts containing PYA in Taxfiler and I came across an issue - the comparatives are not described as "restated".
Is there a way around it?
The company had expensed fixed assets and posted Director's Loan as Share Capital. I took care of that, I'm not sure how to disclose it.
Can you please advise? One seems to be due to voluntary change in accounting policy and the other is an error. Do I simply make a longer note? Or is it possible for me not the disclose the error, just the change in accounting policy as only the latter affected retained earning, the first was is just movement between two equity accounts? Can you please advise if this is acceptable?
"During the year there was a change in accounting policy - the recognision criteria of fixed assets have been revised to ensure the acounts give fair and true view of the financial position of the business. After having analysed the business turnover figure, it has been established that lower capitalisation limit should be applied for the items to be recognised as fixed assets.
The change had the following effect on the financial statements:
2018 2017
Fixed Assets £0 £0
Adj for changes in accounting policy £2000 £2000
Fixed Assets as restated £2000 £2000
Retained Earnings (£2000) (£2000)
Adj for changes in accounting policy £2000 £2000
Retained Earnings £0 £0
I would really, really appreciate your advice,
Regards,
Barbara
Replies (4)
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Yes - alter the comparatives in the Trial Balance.
Just hand type in the entries you need.
I wouldn't fuss about the "Restated". But if you're toey about it, print out the accounts, type the word at the top of the comparative column and file on paper.
I wouldn't fuss about the AIA either. They were entitled to the allowance and they've just stuck the entries in the wrong box. Technically, it's incorrect, but HMRC are unlikely to challenge it, imho. If they do, the directors will just be drawn to the inevitable conclusion that they should have engaged you earlier.
End of the day - the sum involved is buttons to HMRC.