Company Reporting Framework and Tax Accounting
Company financial-statement regulation and accounting for current tax in financial statements.
How to study the ATT Qualification
Use Finance Act 2025 for the 2026 tax papers, complete the three foundational CBEs early, apply professional ethics throughout and concentrate option practice on the one paper you will enter.
Core concepts
Concept 1
Company financial statements operate within legal and applicable accounting requirements.
Exam cue: Identify preparer, user and governing requirement.
Concept 2
Directors prepare statements while auditors, where applicable, provide an independent opinion.
Exam cue: Reconcile accounting profit and current tax computation conceptually.
Concept 3
Current tax expense and liability follow taxable profit but are not identical to accounting profit.
Exam cue: Post tax expense and tax payable to the correct statements.
Risk pitfalls and guardrails
Making the auditor responsible for preparing the accounts.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Assuming tax expense equals the cash paid in the period.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Using taxable profit as accounting profit.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Memory anchors
Director responsibility
Directors are responsible for company financial statements.
Framework
Apply legal form and the relevant accounting framework.
Current tax
Recognise current-period tax expense and unpaid liability.
Profit bridge
Accounting profit requires tax adjustments to reach taxable profit.
Audit role
Audit opinion does not transfer management responsibility.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
Who is responsible for selecting appropriate accounting policies and preparing company financial statements?
What is the main role of an external audit opinion?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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