This is the first year in which the financial statements have been prepared under FRS 102 1A.
The 28 February 2023 financial statements included deferred tax. However they were shown to have been prepared in accordance with FRS 105. As deferred tax is prohibited to be recognised under FRS 105, this would increase the 2023 reserves by £11,948.
However, due to the transition to FRS 102 1A, deferred tax would now be recognised from the transition date of 1 March 2022. If a similar rate of profits were expected for 2024, the effective rate of tax would be higher than that accounted for, as the 25% rate of corporation tax had already become substantively enacted. The result of this is a £3,378 increase in the provision for deferred tax for 2023.
Income statement for the year ended 28 February 2023
Profit under FRS 105 after tax 134,693
Adjustment for deferred tax 3,378
Restated profit after tax under FRS 102 1A 131,315
Statement of financial position at 28 February 2023
Equity under FRS 105 200,873
Adjustment for deferred tax 3,378
Restated equity under FRS 102 1A 197,495