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Post Info TOPIC: Impairmen Shares - Tax consequences, Corporate


Newbie

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Impairmen Shares - Tax consequences, Corporate
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We did an impairment of some shares in another affiliate based on an updated DCF valuation.

Entry: Credit Financial asset - Shared, Debit P&L - Impairment

Accounting stardard is FRS 102.

Is the impairment expense deductible?

Is it a permanent or a temporary adjustment.

 



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Master Book-keeper

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Hi Jacob
So hows about an intro before we start. We always ask newbies!

Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.




-- Edited by Cheshire on Thursday 31st of August 2017 12:42:51 PM

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Newbie

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Hi Joanna,

Sure I am Tax accountant for an Asset Management Company in London. I worked as tax accountant for 4 years in financial services. I have done a CIMA degree and a Master in Finance.

Still not figured out if I need to recognize a deferred tax asset for this transaction.

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Master Book-keeper

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TBH, given your company must be rather large (having a requirement for auditors) and you are a tax accountant, then a bookkeepers forum, despite it having some fully qualified and fab chartered certified Accountants, is probably not the best place for such a question. Or not just at the mo (all those fab folk being ultra busy!), so perhaps your Qs are better on Accountingweb. Although if you post there, I would suggest you provide as much detail as possible and don't do so under the anon option as otherwise will get nothing but derision and scorn.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

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