FRS 102 Tax Reporting
The FRS 102 Tax Accounting function streamlines the calculation of the tax provisions to be included in a company’s year-end accounts. The function calculates the tax charge to be included in the company’s Statement of Comprehensive Income and the Tax Liability to be incorporated in the Statement of Financial Position. Both current and deferred tax amounts are calculated.
To help understand the tax charge in the Statement of Comprehensive Income, the system generates a proof of tax which automatically reconciles the total tax charge to the expected tax charge. This function takes both permanent and timing differences into account. The automation of the proof of tax saves time and provides a strong control over the integrity of the calculation. A full deferred tax calculation is provided based on; the timing differences on fixed assets, losses brought forward and short term timing differences.
A detailed tax account automatically tracks the movement from provisions at the start to the end of the year. This takes into account the current period tax charge, tax payments made during the period, prior year adjustments and other movements.
Statements are presented in a format which can be put into the statutory accounts. Both FRS and IAS 12 accounting standards are supported.
As the tax provision is produced from the tax computation, the function saves valuable time and reduces risks due to the minimal amount of data entry required and the fully automated process.