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Multiple short life assets
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See Also
Short life asset pools | Short life assets | Short life assets - supporting schedule
Select from the following headings:
Background | Developing the
schedule | Completing the Schedule | Standard
Sub-Schedules | Carry Forward | Related
Errors
The purpose of this schedule is to aggregate a number of short life asset schedules where a large number of individual assets have been de-pooled. This schedule is designed to accommodate a large number of de-pooled assets, not to cater for other discreet types of short life assets covered by other types of schedules (e.g. reduced average life SLAs, Short life asset pools).
The plant and machinery general pool aggregates all additions and disposals qualifying as plant or machinery. Writing down allowances are calculated on the balance of the pool. One consequence of this pooling is that under normal circumstances the pool does not give rise to balancing adjustments (either charge or allowance) unless all of the assets in the plant and machinery pool are disposed of.
A Short Life Asset (SLA) election can be used to overcome this problem. Items qualifying as plant and machinery can be separately identified and a de-pooling election made to treat them as SLAs. The consequence of this separate identification is that if the assets are disposed of within the period covered by the election, a balancing adjustment will arise.
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This schedule can be developed from the C schedule by selecting Develop,
Short life assets, Multiple short life assets. It will then be stored
within the 'B' pack of schedules.
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The underlying data for the multiple short life assets schedule is aggregated
from supporting schedules. No data should be entered into this schedule directly.
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The schedule Short
life assets - supporting schedule can be developed from this schedule. The
supporting schedules will handle as many discreet short life assets as required
by the user.
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The system carries forward all SLAs when a new period is built. This continues
until the earliest of disposal or the end of the fourth year after the accounting
period during which the asset was acquired (when the de-pooling election ceases
to have effect).
Once the de-pooling election ceases to have an effect, the tax written down
value at this date is transferred into the plant and machinery general pool.
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Error | How to
solve it |
| Sign error | This error results
from the sign conventions used within the software. This error can be
resolved by clicking the  button.
|
| Excess
waiver | This error
occurs when the writing down allowances (WDA) disclaimed are in excess of
the amount of WDAs actually available. Ensure that the WDAs disclaimed are
not in excess of the actual WDAs. |
| Allowances
waived should be positive | This error results
from the sign conventions used within the software. Writing down allowances
(WDA) are deducted from the profit before tax to arrive at profits chargeable
to corporation tax. If the allowances waived are entered as a negative
number, this actually increases the WDAs claimed in this accounting period
instead of deferring them until future accounting periods. This error
can be resolved by clicking the button. |
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© 2009 Thomson Reuters.