A rise in pre-profit tax
- 2004
- Building 269(8320) 20 February 2004, 52(1) .
Details the recent changes tohow the profitability of a conventional partnership is calculated, which will affect how such a partnership is taxed. A new Accounting Standards Board note concerning the application of FRS5 "Reporting the substance of transactions" (ISBN 1857120264) will make accounting bills show more profit which is likely to mean greater tax bills. Further changes in the accounting policy require a prior period adjustment which may affect work-in-progress for a particular year if it had first been calculated under the old method. These figures will have to be recalculated and the difference between the figures regarded as additional profit.