Right of use assets
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Overview
This
Right of use assets note
is intended to replicate the Right of use asset note within the accounts when completed. Only one sheet is required in the tax computation per period of account. The sheet is optional and can be inserted from the Insert
menu.note
Where Right of use (ROU) assets don’t have a separate ROU disclosure note within the accounts but instead are included within the Tangible fixed asset (TFA) note or Intangible fixed asset (IFA) note, you can insert a separate
Right of use assets
column into the TFA note and IFA note to match the accounts disclosures and the Right of use asset note
is not required.Complete the sheet
Set up the sheet
The
Right of use asset note
is similar in format to the TFA and IFA notes.The default column headings are for the more common TFA categories of
Land and buildings
, Plant and equipment
and Vehicles
. The default setting for this sheet doesn't show columns for IFAs. If IFAs are to be included in the Right of use asset note
, you must change the selector at the bottom of the sheet Show intangible fixed asset columns?
, to Yes
. Additional categories for both TFAs and IFAs can be added by inserting new columns using the down arrow alongside the
Insert menu
and by selecting Insert line item
. There are two further selectors at the bottom of the sheet which can be used to change the display of the sheet to show sub-total columns for the TFAs and IFAs where required and to show rows relating to the transfer in or out of ROU assets, which are otherwise hidden by default.
The
Right of use asset note
deals with the accounting disclosure of ROU assets within the tax computation. To enable the correct tax treatment of tangible ROU assets, you must also insert the Capitalised leased assets
sheet into the computation and for intangible ROU assets, you must insert the Intangible fixed asset summary
and Allowable per accounts
sheets.Cost or valuation
In the first period of using the software, you must enter the ROU asset brought forward cost or valuation figures into the
At period start date
row in the relevant column. For periods thereafter, the cost At period start date
is automatically rolled forward from the prior period At period end date
.Additions
Once additions have been entered onto the
Right of use asset note
, the following steps must be taken to complete the tax analysis of the additions.For tangible ROU assets additions:
You must analyse tangible additions on the TFA
Additions analysis
sheet. Once the
Capitalised leased asset
sheet has also been inserted into the computation, you can analyse the additions in the Capitalised leased assets
column on the Additions analysis
sheet. These additions will then link directly to the Capitalised leased assets
sheet where further entries can be made to complete the tax analysis, for example, depreciation and impairment charges. For intangible ROU assets additions:
You must analyse intangible additions on the IFA
Additions analysis
sheet. Once the
Allowable per accounts
sheet has also been inserted into the computation, you can analyse additions in the Allowable per accounts
column on the Additions analysis
sheet. These additions will then link directly to the Allowable per accounts
sheet where further entries can be made to complete the tax analysis, for example, amortisation and impairment charges. Disposals
Once disposals have been entered onto the Right of use asset note, the following steps must be taken to complete the tax analysis of the disposals.
For tangible ROU asset disposals:
You must analyse tangible disposals on the TFA
Disposals analysis
sheet by entering the relevant disposal values. You must set the Capital allowance type
dropdown selector on the far-right column to Capitalised leased assets
.Any profit or loss on disposal of the assets within the
Income statement
must be analysed on the Expense and income analysis
sheet by selecting P/L on disposal
as the Analysed as
type from the dropdown menu. For intangible ROU asset disposals:
You must analyse intangible disposals on the IFA
Disposals analysis
sheet by entering the relevant disposal values. You must set the IFA type
dropdown selector on the far-right column to Allowable per accounts
.Any profit or loss on disposal of the assets within the
Income statement
must be analysed on the Expense and income
analysis sheet by selecting IFA – P/L on disposal
as the Analysed as
type from the dropdown menu.Depreciation or amortisation
Depreciation and amortisation within the Income statement must first be analysed on the Expense and income analysis sheet by selecting the following
Analysed as
type from the dropdown menu:- For tangible ROU assets, selectDepreciation.
- For intangible ROU assets, selectIFA – Amortisation and other debits/credits.
note
There is no separate
Analysed as
category for ROU asset depreciation. You must enter depreciation and amortisation relating to ROU asset into the relevant column on the
Charge for the period
within the Depreciation and amortisation
section of the sheet to match the ROU asset note within the financial statements. note
The total depreciation and amortisation relating to TFAs and IFAs are sub-totalled in the
Analysis of depreciation and amortisation
section. These amounts link directly to the respective Tangible fixed asset note
and Intangible fixed asset note
sheets to ensure the total depreciation and amortisation adjustments for all assets are dealt with correctly in the tax computation. Impairment losses, disposals and transfers in/out
Other values to be entered into the
Right of use asset note
include impairment losses and adjustments relating to transfers in and transfers out.