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MySF Administrator
Group: Administrators
Last Login: Today @ 8:08:32 PM
Posts: 293,
Visits: 390
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Hi,
We have had a number of emails and phone calls about the year end process in MySF Manager allocating all of the unrealised loss for a financial year into account 2255 Carried forward capital losses.
This is incorrect and a setting needs to be changed to ensure that 85% of the losses wash through to a reduction in equity.
Please go to File > Settings > Capital Gains and Carried Forward Losses. On this tab please select 'Apply tax benefit of loss against tax payable'. This will ensure that 85% of the loss will be used to decrease equity, and the other 15% will go to 2255 Carried forward capital losses. The reason that only 85% goes through to equity is that a gain would be reduced by a provision for future tax payable and so a loss is also reduced by a provision for future real loss.
Regards,
MySF
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