Provisions
Overview
This sheet is designed to analyse the tax treatment in respect of the various provisions within the computation.
Completing the Sheets
In the
Provisions
sheet add rows for each item provision you would like to analyse. You should then choose the type of provision you are analysing by selecting an option from the column Tax accounting balance sheet category
. By selecting this option, the amounts will appear on the correct disclosure lines in the Adjustment of profit (A)
schedule. The amounts should also appear on the Tax basis balance sheet (I3) schedule
if this schedule has been linked.Any amounts entered in the
Permanent
and Temporary adjustment
columns will adjust the total calculated in the Net taxable movement
column. If the entire adjustment is permanent, the option in the Permanent difference
column must be selected. The correct temporary and permanent differences will then be calculated on the Adjustment of profit (A) schedule. These amounts will then be used to calculate deferred tax on the Reconciling items (I6)
schedule.The balance check on this sheet compares the total in the closing balance column to all the provision line items on the balance sheet. You can see a breakdown of these line items from the balance sheet under the section
Reconciliation to Balance Sheet
.