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Amounts included in P/L reserves

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See Also

Adjustment of profit | Expense analysis | Foreign exchange differences | Loan relationships | Profit and loss account / Income statement (D schedule)


Select from the following headings:

Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors


Background

The schedule is used to adjust the computation for allowable or taxable amounts that have been accounted for in the P/L reserves and not included in the current year P/L account.

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Developing the schedule

One copy of this schedule may be developed from either the D schedule or an Expense and income analysis schedule.

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Completing the schedule

Movement on currency translation reserve and other rows

The top part of the schedule is used to list the increase or decrease in those P/L reserves that include allowable or non-taxable amounts and follows the normal P/L debit/(credit) sign convention (i.e. profits are entered as negative amounts). The user can insert additional rows as required.

The full amount is treated as allowable or taxable and then adjusted lower down the schedule for amounts that are included in the movement but are not allowable or taxable.

Profits/(losses) included elsewhere

The software automatically reduces the total movement by P/L reserve amounts that have been dealt with on the Foreign exchange differences or Loan relationships schedules. It is assumed that these amounts have been included in the reserves above and the user should check that this is the case.

The user can insert further rows at this point for additional reserve items that have been dealt with elsewhere, but related adjustments to the deferred tax schedules will need to be made manually.

Adjustments for non taxable income/(disallowable expenses)

The bottom section is used to list disallowable or nontaxable amounts included in the reserves. The net resulting profit or loss is then added to or deducted from the profit before tax on the A schedule.

Note: the user must make this adjustment manually in investment company computations.

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Standard sub-schedules

The schedule has no standard sub-schedules.

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Carry forward

This schedule does not carry forward.

 

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Related errors

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