Matt Blake - Commissioners’ Advisory Accountant (MB) HM Revenue &
Customs (HMRC)
Nick Houghton (NH) HMRC
Alison Bull (AB) HMRC
Nic Clarke (NC) HMRC
Abbie Steele (AS) HMRC
Ian Menzies - Conacher (IMC) CBI
Chas Roy - Chowdhury (CRC) ACCA
James Barbour (JB) ICAS
Andrew Lennard (AL) ASB
Frank Haskew (FH) ICAEW
Lakshmi Narain CIOT
John Cullinane (CIOT)
John Harnedy (HMT)
1.1. Introductions were made as there were a couple of first attendees present.
1.2. The minutes of the previous meeting were distributed and a small number of changes discussed. It was agreed that the draft minutes be circulated via email to give those not attending chance to comment before they were finalised and published on the website.
2.1. The consultation document 'Corporation tax calculations and returns for smaller companies' was issued on 24 November 2008. A link to the consultation is set out below. The deadline for comments is 20 February 2009. HMRC confirmed that background to the consultation exercise was to see if there were ways in which the admin burden for taxpayers could be reduced - the ideas will only be developed further if there is convincing support from business.
Corporation tax calculations and returns for smaller companies
2.2. The group briefly discussed the aim of the review and recognised that the consultation document was admirably clear. A number of views were articulated and HMRC confirmed that they would welcome all comments and ideas from business, advisers and representative bodies as part of the consultation process. Comments should be sent to John Harnedy, CT Calculations Review Team, Room 2/E1, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ.
2.3. It was noted that the consultation document does not specifically deal with micros and that further work may be needed depending upon the current European micros accounting changes review.
3.1. The group went through the items on the Commissioners’ Advisory Accountant’s Forward Look that had been updated on 28 November 2008 and had been circulated before the meeting. The main items for discussion were as follows:
3.1.1. IFRIC 17 - Under UK GAAP companies distributing non cash assets to shareholders do not account for a profit or loss on the transaction. IFRIC17 requires the distribution to be at fair value of the assets distributed with any difference taken to profit and loss account - this will have an impact on both accounts and, therefore, potentially tax profits. It has not yet been endorsed by the EU. It is expected to apply from 1 July 2009. A more detailed examination of its implications is needed (eg does it apply to services).
3.1.2. IAS39/FRS26 - The group noted that it is uncertain as to whether the amendments are final as discussions are continuing. HMRC advised that their main concern related to retrospection, particularly as originally drafted. This point has been clarified in another amendment to IAS39, where reclassifications from 1 November 2008 take place from the date of reclassification and not an earlier date. It was noted that this has not yet been endorsed by the EU and FRS26 has not yet been similarly amended but is expected to be.
3.1.3. IAS37 - It was noted that the first draft of the exposure draft was incomplete and due to complexities it was generally acknowledged that this issue was not expected to move quickly.
3.1.4. Income Taxes Project, IAS 12 - This will be a new IFRS and not a revision to IAS12. It was still hoped that the exposure draft would be out in Q4 2008.
3.1.5. Leases - The group would be interested to see what the discussion paper says. It was reported that the current draft was incomplete.
3.1.6. Carbon accounting standard - The group was not aware of one.
3.1.7. EU endorsements - The group expressed continuing concern about the speed of endorsements.
3.1.8. IFRS for SMES - The group acknowledged that there were general concerns about this.
4.1 Accounting for work in progress was discussed.
5.1 The dates for 2009 meetings to be circulated in the new year.
