The Business Income Manual (BIM) has been rewritten to include legislative changes, the Tax Law Rewrite, and new chapters on the Simpler Income Tax rules. It has also been updated for accountancy changes introduced by new UK GAAP.
The changes are detailed below:
BIM31015 Tax and accountancy: meaning of ‘generally accepted accounting practice’
- Explores the meaning of accepted accounting practice and the types of entity which are obliged to report under UK and/or international GAAP.
BIM31027 Tax and accountancy: interaction between UK GAAP and IAS
- Looks at the interaction with UK GAAP and International Accounting Standards (IAS). It explains that UK GAAP cannot cover every possible type of transaction and, where this is the case, an entity may look towards IAS which may offer some guidance as to best practice.
- It also considers the the situation where certain companies in a group report under UK GAAP and some under IAS, and draws attention to the anti-avoidance legislation contained at Corporation Tax Act 2010, s.996, which prevents any tax advantage arising where some group companies are using UK GAAP and some IAS.
BIM31030 Tax and accountancy: concepts and pervasive principles
- Explains FRS 102 Section 2: 'Concepts and Pervasive Principles', which requires entities to apply the accruals basis of accounting.
- It also highlights the principles which should underline financial statements, ie understandability, relevance, materiality, reliability, substance over form, prudence, completeness, comparability, timeliness and balance between benefit and cost.
BIM31040 Tax and accountancy: events after the end of the reporting period
- Explains section 32 of FRS 102, dealing with post-balance sheet events. It is not substantially different to existing guidance in FRS 21 of IAS 10 and the requirement still exists for accounts to reflect events after the balance sheet date where they provide evidence of conditions existing at the balance sheet date.
BIM31045 Tax and accountancy: materiality, an accountancy concept
- Considers the effects of materiality and taxation.
BIM34055 Change of basis of computing taxable profits: accounting policy changes: Section 10 of FRS102
- Looks at changes of accounting policy and the effects on taxation, and notes that there is little change from FRS 18 and IAS 8.
For more information, see 'Related links'.