Gwion Ashton
Joined: 4/19/2024
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Transitional profits - actual vs time apportioned
My current year end is 31st December. In order to calculate transitional profits can I implement both approaches below? 1. Prepare extended accounts 1st January 2023 - 5th April 2024, find total profit for 15 months then time apportion 3/15ths (365/461). 2.Prepare accounts accounts 1st January 2023 - 31st December 2023 to find standard profit, then prepare accounts 1st January 2024 - 5th April 2024 to find transitional profit? Depending on the timing of when the profits arise, one could have advantages over the other.