Assets held for leasing under operating leases - prior period adjustment
The accounts have been restated to incorporate the misclassification of a number of mobile phones that were capitalised as assets being leased under operating leases which should have been included as trading sales and purchases in the 2021 financial statements. The change has resulted in profits available for distribution at 31st December 2021 increasing after tax by £1725.
Summary of the prior period accounting impact to the profit and loss account.
Increase in Turnover £27445
Increase in Cost of Sales £(33976)
Reduction in Depreciation £8609
Increase in Corporation tax charge £(5173)
Reduction in Deferred tax provision £4820
Change to profits available for distribution £1725
Summary of the prior period impact to the balance sheet.
Increase in Debtors £32934
Reduction in Tangible Fixed Assets £(25367)
Increase in Creditors Due Within 1 year £(10662)
Reduction in Provision for deferred tax £4820
Change to profits available for distribution £1725