Tax Administration (Financial Statements) Order

Question 1

INLAND REVENUE REQUIREMENTS
The information required to be disclosed in the financial state­ments is as follows:
• ______________________________________.
• Statement of Accounting Policies.
• Associated Persons Disclosure – the requirements of this disclosure differ to previous related party disclosures under GAAP. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• Reconciliation of the company’s financial statements to taxable income.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 1

Summarised Balance Sheet and Profit and Loss Account

Question 2

INLAND REVENUE REQUIREMENTS
The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• ___________________________________________.
• Associated Persons Disclosure – the requirements of this disclosure differ to previous related party disclosures under GAAP. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• Reconciliation of the company’s financial statements to taxable income.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 2

Statement of Accounting Policies

Question 3

INLAND REVENUE REQUIREMENTS
The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• Statement of Accounting Policies.
• __________________ – the requirements of this disclosure differ to previous related party disclosures under GAAP. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• Reconciliation of the company’s financial statements to taxable income.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 3

Associated Persons Disclosure

Question 4

INLAND REVENUE REQUIREMENTS
The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• Statement of Accounting Policies.
• Associated Persons Disclosure – _______________________________________. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• Reconciliation of the company’s financial statements to taxable income.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 4

the requirements of this disclosure differ to previous related party disclosures under GAAP

Question 5

INLAND REVENUE REQUIREMENTS
The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• Statement of Accounting Policies.
• Associated Persons Disclosure – the requirements of this disclosure differ to previous related party disclosures under GAAP. _________________________________ that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• Reconciliation of the company’s financial statements to taxable income.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 5

‘Associated persons’ is defined by reference to the Income Tax Act 2007

Question 6

INLAND REVENUE REQUIREMENTS
The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• Statement of Accounting Policies.
• Associated Persons Disclosure – the requirements of this disclosure differ to previous related party disclosures under GAAP. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• ___________________– there must be a separate disclosure detailing any large one off transactions during the year.
• Reconciliation of the company’s financial statements to taxable income.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 6

Exceptional Items Disclosure

Question 7

INLAND REVENUE REQUIREMENTS
The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• Statement of Accounting Policies.
• Associated Persons Disclosure – the requirements of this disclosure differ to previous related party disclosures under GAAP. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• ____________________________________________.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 7

Reconciliation of the company’s financial statements to taxable income

Question 8

The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• Statement of Accounting Policies.
• Associated Persons Disclosure – the requirements of this disclosure differ to previous related party disclosures under GAAP. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• ___________________________________________________.
• Tax fixed asset register.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 8

Reconciliation of the company’s financial statements to taxable income

Question 9

The information required to be disclosed in the financial state­ments is as follows:
• Summarised Balance Sheet and Profit and Loss Account.
• Statement of Accounting Policies.
• Associated Persons Disclosure – the requirements of this disclosure differ to previous related party disclosures under GAAP. ‘Associated persons’ is defined by reference to the Income Tax Act 2007 that provides a broad definition of who a company will be associated with. A disclosure is required of all transactions between the company and any associated non-corporate (such as an individual or trust), or between the company and a non-resident company.
• Exceptional Items Disclosure – there must be a separate disclosure detailing any large one off transactions during the year.
• Reconciliation of the company’s financial statements to taxable income.
• ___________________________.
The information contained in the associated persons’ dis­closures will provide Inland Revenue with valuable informa­tion, especially where the transactions indicate non arms’ length dealings. We recommend that these disclosures are reviewed by a tax advisor to ensure it does not bring undue Inland Revenue scrutiny.

Answer 9

Tax fixed asset register

Question 10

Which Part of the Income Tax Act 2007 deals with Associated Persons?

Answer 10

Part YB

Question 11

What does “company” mean with respect to the Tax Administration (Financial Statements) Order 2014 (the Order)?

Answer 11

The same as in the Income Tax Act 2007 as defined in section YA 1.

Question 12

Under the ___________, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) assets: (c) double-entry: (d) expenditure: (e) historical cost: (f) income: (g) intangible property: (h) liabilities: (i) net assets.

Answer 12

Order

Question 13

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) ________________: (b) assets: (c) double-entry: (d) expenditure: (e) historical cost: (f) income: (g) intangible property: (h) liabilities: (i) net assets.

Answer 13

accrual accounting

Question 14

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) __________: (c) double-entry: (d) expenditure: (e) historical cost: (f) income: (g) intangible property: (h) liabilities: (i) net assets.

Answer 14

assets

Question 15

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) assets: (c) _____________: (d) expenditure: (e) historical cost: (f) income: (g) intangible property: (h) liabilities: (i) net assets.

Answer 15

double-entry

Question 16

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) assets: (c) double-entry: (d) _____________: (e) historical cost: (f) income: (g) intangible property: (h) liabilities: (i) net assets.

Answer 16

expenditure

Question 17

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) assets: (c) double-entry: (d) expenditure: (e) historical cost: (f) ___________: (g) intangible property: (h) liabilities: (i) net assets.

Answer 17

income

Question 18

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) assets: (c) double-entry: (d) expenditure: (e) historical cost: (f) income: (g) _______________: (h) liabilities: (i) net assets.

Answer 18

intangible property  

Question 19

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) assets: (c) double-entry: (d) expenditure: (e) historical cost: (f) income: (g) intangible property: (h) _________: (i) net assets.

Answer 19

liabilities

Question 20

Under the Order, the following terms or expressions have the meaning given to them by accounting principles:
(a) accrual accounting: (b) assets: (c) double-entry: (d) expenditure: (e) historical cost: (f) income: (g) intangible property: (h) liabilities: (i) _____________.

Answer 20

net assets

Question 21

How matters must be shown under the ____________:

(h) interest and dividends received must be shown in the financial statements grossed up for resident withholding tax; and
(i) dividends received must be shown in the financial statements grossed up for imputation credits to the extent that the dividend is taxable and the credits are available to satisfy the company’s income tax liability for the income year.

Answer 21

Order

Question 22

How matters must be shown under the Order:

(h) _________________ must be shown in the financial statements grossed up for resident withholding tax; and
(i) dividends received must be shown in the financial statements grossed up for imputation credits to the extent that the dividend is taxable and the credits are available to satisfy the company’s income tax liability for the income year.

Answer 22

interest and dividends received

Question 23

How matters must be shown under the Order:

(h) interest and dividends received must be shown in the _______________ grossed up for resident withholding tax; and
(i) dividends received must be shown in the financial statements grossed up for imputation credits to the extent that the dividend is taxable and the credits are available to satisfy the company’s income tax liability for the income year.

Answer 23

financial statements

Question 24

How matters must be shown under the Order:

(h) interest and dividends received must be shown in the financial statements ______________________; and
(i) dividends received must be shown in the financial statements grossed up for imputation credits to the extent that the dividend is taxable and the credits are available to satisfy the company’s income tax liability for the income year.

Answer 24

statements grossed up for resident withholding tax

Question 25

How matters must be shown under the Order:

(h) interest and dividends received must be shown in the financial statements grossed up for resident withholding tax; and
(i) ____________ must be shown in the financial statements grossed up for imputation credits to the extent that the dividend is taxable and the credits are available to satisfy the company’s income tax liability for the income year.

Answer 25

dividends received

Question 26

How matters must be shown under the Order:

(h) interest and dividends received must be shown in the financial statements grossed up for resident withholding tax; and
(i) dividends received must be shown in the financial statements _________________ to the extent that the dividend is taxable and the credits are available to satisfy the company’s income tax liability for the income year.

Answer 26

grossed up for imputation credits

Question 27

A company must also show in its financial statements the matters listed in subclause (3) in respect of a transaction between the company and any ________________ of the company (A) within the meaning of subpart YB of Part Y of the Income Tax Act 2007 if—

(a) A is not a company (for example, A is an individual or trust); or
(b) A is a company that is not resident in New Zealand for the purposes of section YD 2 of the Income Tax Act 2007.
(3) The matters are—
(a) the following amounts:
(i) interest expense incurred by the company in respect of any loan made to the company by the associated person; and
(ii) amounts paid by the company to the associated person in the nature of outbound loans or other advances; and
(iii) expenses incurred by the company for services provided by the associated person (including wages, salaries, management fees, and payments for other services provided to the company); and
(iv) expenses incurred by the company to the associated person in respect of rentals or leases of land or other assets; and
(v) expenses incurred by the company to the associated person for acquiring or using intangible property, including royalty payments; and
(b) a reconciliation of movements in shareholders’ equity and loans or current accounts to, and from, the shareholders or other owners of the company and associated persons of the company.

Answer 27

associated person

Question 28

A company must also show in its financial statements the matters listed in subclause (3) in respect of a transaction between the company and any associated person of the company (A) within the meaning of ______________ of Part Y of the Income Tax Act 2007 if—

(a) A is not a company (for example, A is an individual or trust); or
(b) A is a company that is not resident in New Zealand for the purposes of section YD 2 of the Income Tax Act 2007.
(3) The matters are—
(a) the following amounts:
(i) interest expense incurred by the company in respect of any loan made to the company by the associated person; and
(ii) amounts paid by the company to the associated person in the nature of outbound loans or other advances; and
(iii) expenses incurred by the company for services provided by the associated person (including wages, salaries, management fees, and payments for other services provided to the company); and
(iv) expenses incurred by the company to the associated person in respect of rentals or leases of land or other assets; and
(v) expenses incurred by the company to the associated person for acquiring or using intangible property, including royalty payments; and
(b) a reconciliation of movements in shareholders’ equity and loans or current accounts to, and from, the shareholders or other owners of the company and associated persons of the company.

Answer 28

subpart YB

Question 29

A company must also show in its financial statements the matters listed in subclause (3) in respect of a transaction between the company and any associated person of the company (A) within the meaning of subpart YB of Part Y of the Income Tax Act 2007 if—

(a) A is not a company (for example, A is an individual or trust); or
(b) A is a company that is not resident in New Zealand for the purposes of section YD 2 of the Income Tax Act 2007.
(3) The matters are—
(a) the following amounts:
(i) interest expense incurred by the company in respect of any loan made to the company by the associated person; and
(ii) amounts paid by the company to the associated person in the nature of outbound loans or other advances; and
(iii) expenses incurred by the company for services provided by the associated person (including wages, salaries, management fees, and payments for other services provided to the company); and
(iv) expenses incurred by the company to the associated person in respect of rentals or leases of land or other assets; and
(v) expenses incurred by the company to the associated person for acquiring or using intangible property, including royalty payments; and
(b) a reconciliation of movements in shareholders’ equity and loans or current accounts to, and from, the shareholders or other owners of the company and associated persons of the company.

Answer 29

A is not a company

Question 30

A company must also show in its financial statements the matters listed in subclause (3) in respect of a transaction between the company and any associated person of the company (A) within the meaning of subpart YB of Part Y of the Income Tax Act 2007 if—

(a) A is not a company (for example, A is an individual or trust); or
(b) ____________________________ for the purposes of section YD 2 of the Income Tax Act 2007.
(3) The matters are—
(a) the following amounts:
(i) interest expense incurred by the company in respect of any loan made to the company by the associated person; and
(ii) amounts paid by the company to the associated person in the nature of outbound loans or other advances; and
(iii) expenses incurred by the company for services provided by the associated person (including wages, salaries, management fees, and payments for other services provided to the company); and
(iv) expenses incurred by the company to the associated person in respect of rentals or leases of land or other assets; and
(v) expenses incurred by the company to the associated person for acquiring or using intangible property, including royalty payments; and
(b) a reconciliation of movements in shareholders’ equity and loans or current accounts to, and from, the shareholders or other owners of the company and associated persons of the company.

Answer 30

A is a company that is not resident in New Zealand

Question 31

A company must also show in its financial statements the matters listed in subclause (3) in respect of a transaction between the company and any associated person of the company (A) within the meaning of subpart YB of Part Y of the Income Tax Act 2007 if—

(a) A is not a company (for example, A is an individual or trust); or
(b) A is a company that is not resident in New Zealand _____________________ of the Income Tax Act 2007.
(3) The matters are—
(a) the following amounts:
(i) interest expense incurred by the company in respect of any loan made to the company by the associated person; and
(ii) amounts paid by the company to the associated person in the nature of outbound loans or other advances; and
(iii) expenses incurred by the company for services provided by the associated person (including wages, salaries, management fees, and payments for other services provided to the company); and
(iv) expenses incurred by the company to the associated person in respect of rentals or leases of land or other assets; and
(v) expenses incurred by the company to the associated person for acquiring or using intangible property, including royalty payments; and
(b) a reconciliation of movements in shareholders’ equity and loans or current accounts to, and from, the shareholders or other owners of the company and associated persons of the company.

Answer 31

for the purposes of section YD 2

Question 32

Minimum requirements for preparing financial statements
The minimum requirements for the preparation of financial statements under the Act are as follows:
Form of financial statements
(a) the financial statements must consist of—
(i) ________________ setting out the assets, liabilities,
and net assets of the company as at the end of the
income year; and
(ii) a profit and loss statement showing income derived,
and expenditure incurred, by the company
during the income year; and

Matters that statements must show
(f) the financial statements must show the matters prescribed
in the Schedule; and
(g) the financial statements must disclose comparable figures
for the previous income year; and

Answer 32

a balance sheet

Question 33

Minimum requirements for preparing financial statements
The minimum requirements for the preparation of financial statements under the Act are as follows:
Form of financial statements
(a) the financial statements must consist of—
(i) a balance sheet setting out the assets, liabilities,
and net assets of the company as at the end of the
income year; and
(ii) a profit and loss statement showing income derived,
and expenditure incurred, by the company
during the income year; and

Matters that statements must show
(f) the financial statements must show the matters prescribed
in the Schedule; and
(g) the financial statements must disclose comparable figures
for the previous income year;

Answer 33

setting out the assets, liabilities, and net assets of the company

Question 34

Minimum requirements for preparing financial statements
The minimum requirements for the preparation of financial statements under the Act are as follows:
Form of financial statements
(a) the financial statements must consist of—
(i) a balance sheet _____________________________ of the company as at the end of the
income year; and
(ii) a profit and loss statement showing income derived,
and expenditure incurred, by the company
during the income year; and

Matters that statements must show
(f) the financial statements must show the matters prescribed
in the Schedule; and
(g) the financial statements must disclose comparable figures
for the previous income year;

Answer 34

setting out the assets, liabilities, and net assets of the company

Question 35

Minimum requirements for preparing financial statements
The minimum requirements for the preparation of financial statements under the Act are as follows:
Form of financial statements
(a) the financial statements must consist of—
(i) a balance sheet setting out the assets, liabilities,
and net assets of the company as at the end of the
income year; and
(ii) ____________________showing income derived,
and expenditure incurred, by the company
during the income year; and

Matters that statements must show
(f) the financial statements must show the matters prescribed
in the Schedule; and
(g) the financial statements must disclose comparable figures
for the previous income year;

Answer 35

a profit and loss statement

Question 36

Minimum requirements for preparing financial statements
The minimum requirements for the preparation of financial statements under the Act are as follows:
Form of financial statements
(a) the financial statements must consist of—
(i) a balance sheet setting out the assets, liabilities,
and net assets of the company as at the end of the
income year; and
(ii) a profit and loss statement showing _____________________________, by the company
during the income year; and

Matters that statements must show
(f) the financial statements must show the matters prescribed
in the Schedule; and
(g) the financial statements must disclose comparable figures
for the previous income year;

Answer 36

showing income derived, and expenditure incurred

Question 37

Also, the Act (TAA) provides that if another enactment provides applicable
___________________________________
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see section 21B(3) of the TAA 1994). So, for example,
if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a large company, it must prepare its financial statements
in accordance with Part 11 of the Companies Act 1993.

Answer 37

minimum requirements for preparing financial statements

Question 38

Also, the Act (TAA) provides that if another enactment provides applicable
___________________________________
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see section 21B(3) of the TAA 1994). So, for example,
if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a large company, it must prepare its financial statements
in accordance with Part 11 of the Companies Act 1993.

Answer 38

minimum requirements for preparing financial statements

Question 39

Also, the Act (TAA) provides that if another enactment provides applicable
minimum requirements for preparing financial statements for
the company, the company must prepare its financial statements using
those minimum requirements and ____________________(see section 21B(3) of the TAA 1994). So, for example, if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a large company, it must prepare its financial statements
in accordance with Part 11 of the Companies Act 1993.

Answer 39

is exempt from the ones prescribed in this order

Question 40

Also, the Act (TAA) provides that if another enactment provides applicable
minimum requirements for preparing financial statements for
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see ________________ of the TAA 1994). So, for example,
if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a large company, it must prepare its financial statements
in accordance with Part 11 of the Companies Act 1993.

Answer 40

section 21B(3)

Question 41

Also, the Act (TAA) provides that if another enactment provides applicable
minimum requirements for preparing financial statements for
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see section 21B(3) of the TAA 1994). So, for example,
if the company is a ____________, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a large company, it must prepare its financial statements

Answer 41

charity

Question 42

Also, the Act (TAA) provides that if another enactment provides applicable
minimum requirements for preparing financial statements for
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see section 21B(3) of the TAA 1994). So, for example,
if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the _____________. If the
company is a large company, it must prepare its financial statements
in accordance with Part 11 of the Companies Act 1993.

Answer 42

Charities Act 2005

Question 43

Also, the Act (TAA) provides that if another enactment provides applicable
minimum requirements for preparing financial statements for
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see section 21B(3) of the TAA 1994). So, for example,
if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a l_______________, it must prepare its financial statements
in accordance with Part 11 of the Companies Act 1993.

Answer 43

large company

Question 44

Also, the Act (TAA) provides that if another enactment provides applicable
minimum requirements for preparing financial statements for
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see section 21B(3) of the TAA 1994). So, for example,
if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a large company, it must prepare its financial statements
in accordance with ____________ of the Companies Act 1993.

Answer 44

Part 11

Question 45

Also, the Act (TAA) provides that if another enactment provides applicable
minimum requirements for preparing financial statements for
the company, the company must prepare its financial statements using
those minimum requirements and is exempt from the ones prescribed
in this order (see section 21B(3) of the TAA 1994). So, for example,
if the company is a charity, it must prepare its financial statements in
accordance with the requirements of the Charities Act 2005. If the
company is a large company, it must prepare its financial statements
in accordance with Part 11 of the _____________.

Answer 45

Companies Act 1993

Question 46

• The financial statements must show all amounts from the _____ relevant to the company (EY).

Answer 46

IR10

Question 47

Under section 22 of the TAA, how long are taxpayers required to keep records?

Answer 47

Is not required to retain those records for a period of more than 7 years after the end of the income year to which the records relate.