Provision for Deferred Tax

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Hi

I've been given Opening Balances by an Accountant, one of the Opening Balances is for Provision for Deferred Tax. I don't currently have an account set up for this and I'm not sure which Category to code it to? I don't think the Accountant knew either, because everything else has been coded!!

Thanks for any advice!!

Sue

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Provision for Deferred Tax

    I've set it up as a current liability.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Provision for Deferred Tax

    Ok thanks, I'll do the same.

    I couln't decide whether it might be Current Liability or Capital and Reserves!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Provision for Deferred Tax

    Depending on the type of asset(s) the deferred tax relates to (i.e. large machinery), it could be an L.T.L?

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Provision for Deferred Tax

    Hi everybody,

    It is usually fine to put deferred tax provisions in creditors. The provision usually appears after creditors falling due after more than one year (as it is only a provision) in a set of financial statements but it doesn't really matter where you code it to as long as it is shown within creditors.

    Best regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Provision for Deferred Tax

    Thanks everyone.

    I'll post it within the Creditors.

    I guess going back to the Accountant to ask, wouldn't have made me look as stupid as I thought, as they could actually have given me more details!!

    Sue

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