Accounting Principles for Tax Purposes

ISBN-13: 9781780434551 / Angielski / Miękka / 2014 / 476 str.

Lynne Oats;Bill Telford

Opis

This fifth edition of Accounting Principles for Tax Purposes bridges the gap between UK tax and accountancy and is the only work of reference that provides a guide through the complex maze of UK accounting principles, providing the key answers to interpreting accounts for tax and other purposes. This practical work is recognized in the tax profession as the bible for non-accounting professionals who have to use accounts in their work. The book has been completely updated to examine recent developments affecting the interface between accounting and tax rules and regulations. It is written for tax practitioners who wish to gain a better understanding of accounting rules in the UK, how these are applied in different circumstances to a set of financial statements, and what the resultant impact on the taxable profit is. The starting basis for tax computation for a business for either income tax or corporation tax is a set of accounts prepared in accordance with financial reporting standards. Her Majesty's Revenue and Customs (HMRC) employ a number of accounting specialists who consider whether the accounting treatment in a particular case is correct. While this is particularly prevalent for large companies, it is also a key issue for the smaller business. Accounting flaws will have an impact on the tax treatment and may well give HMRC grounds for discovery assessments. Since the publication of the previous edition in 2010, there have been a number of important developments. There is a fundamental change in the structure of UK accounting standards. For some time, the existing set of standards that comprises UK GAAP have been viewed as no longer fit for purpose. As a result, three new standards (FRSs 100-102) have been introduced and replace the existing standards as of January 2015. As they are loosely based on IFRS, accountants will have a range of issues to understand, from changes in terminology to presentational issues. The following cases are included: Smith vs HMRC (2011) STC 1724, where the recognition of income was queried * Greenback Holidays vs HMRC (2011) STC 1582, which focused on the definition and accounting treatment of goodwill * Greene King plc v HMRC (2012) UKFTT 385 (TC), which dealt with tax avoidance across different companies within a group and has major implications for tax advisors, taxpayers, and auditors.

Spis treści

Chapter 1 Introduction Part I Accounting Principles and Financial Statements Chapter 2 The Legal and Institutional Framework Chapter 3 Financial Statements - What is GAAP? Chapter 4 An Accounting Overview Chapter 5 Back to Basics: Accounting Principles Chapter 6 The Form and Content of Financial Statements Chapter 7 Statements of Cash Flow Chapter 8 Events after the Reporting Period Chapter 9 Related Parties Chapter 10 Accounting for Tax Part II Basic Accounting Issues Chapter 11 Revenue Recognition Chapter 12 Inventories Chapter 13 Goodwill and Intangible Assets Chapter 14 Property, Plant and Equipment Chapter 15 Investment Property Chapter 16 Depreciation, Amortisation and Impairment Chapter 17 Acquiring Assets on Finance Chapter 18 Financial Instruments Chapter 19 Liabilities and Equity, Provisions and Contingencies Chapter 20 Employee Benefits Chapter 21 Share-based Payments Chapter 22 Government Grants Chapter 23 Foreign Currency Translation Part III Advanced Accounting Issues Chapter 24 Groups Chapter 25 Corporate Transactions - The Theory Chapter 26 Corporate Transactions - The Practice Part IV Special Situations Chapter 27 Specialised Activities Chapter 28 Limited Liability Partnerships Chapter 29 Smaller Entities Chapter 30 Transition to New GAAP Part V Conceptual Developments Chapter 31 Accounting and Tax Profit - Background and Present Position Chapter 32 Future Developments Appendix A Summary and Commentary on the Main Cases Appendix B Accounting Ratios and Jargon Appendix C Further Reading