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Reserves (single item) |
See Also
Adjustment of profit | Expense analysis | Multiple general reserves | Pension costs | Profit and loss account / Income statement (D schedule) | UK property business analysis | UK property income
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
This schedule allows any row on an expense analysis schedule, or a UK property business schedule to be analysed between taxable and non-taxable provisions. This type of schedule will be suitable both for provisions (e.g. general bad debt provisions or stock provisions) and for deferred income taxed on a non-accounting basis. A separate schedule has to be called up for each reserve.
This schedule can be developed from the D schedule, an expense and income analysis, or a UK property business analysis using the Develop menu and Provisions and reserves.
General
The schedule follows the Dr / Cr sign convention, and the general and specific columns are hidden until used. Column headings and row descriptions may be altered, provided the initial intent is preserved.
The schedule allows the analysis of both specific and general reserves with captions for opening balances, charges made to P/L, and amounts written off in the period.
Movement in general reserve
Movements in the general reserve are transferred to the Adjustment of profit schedule and treated as appropriate, i.e. a net increase in a general provision will be disallowed, and a net decrease in such a provision will be tax-deductible. This will be reflected in the corresponding caption on the schedule.
Property Companies
Where the schedule was developed from a UK property business analysis the adjustment will be made on the UK property income.
Investment companies
The investment company version has three columns - for reserves deductible as charged to P/L, deductible as incurred and non-deductible. In the first two cases, the net allowable amount is treated as an allowable expense of management on the parent expense analysis schedule, or as an allowable UK property business expense if appropriate.
Long periods of account
For long periods of account, two written off rows are provided, one relating to each accounting period.
Where the schedule was developed from a UK property business analysis the adjustment will be made on the UK property income.
Investment companies
The investment company version has three columns - for reserves deductible as charged to P/L, deductible as incurred and non-deductible. In the first two cases, the net allowable amount is treated as an allowable expense of management on the parent expense analysis schedule, or as an allowable UK property business expense if appropriate.
Long periods of account
For long periods of account, two written off rows are provided, one relating to each accounting period.
The schedule has no standard sub-schedules.
On carry forward, the balance in each column will be carried forward to the next period.
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