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The Opening balances template records the opening position of the timing differences used in the deferred tax calculation, together with the deferred tax rates to apply. It is where the brought-forward deferred tax position is established, particularly when a file is first set up or when opening figures need to be entered.

Table of contents 

When should I use this template?

Use it to enter or check the opening timing difference balances and the deferred tax rates, so the deferred tax movement for the period is calculated from the correct starting point.

Before you start

Set up the categories in the DT disclosure categories - setup template, as the opening balances are recorded against those categories.

What you enter

Opening deferred tax rate — enter the opening tax rate (as a percentage) and, if the rate is changing, an adjustment to the opening rate; Silverfin derives the adjusted rate from the two.

Opening balances per category — for each timing difference category enter:

  • Total timing difference opening balance — the gross opening timing difference.
  • Unrecognised timing difference opening balance — the part not recognised for deferred tax. Enter this with the opposite sign to the total timing difference (Silverfin reminds you of this on screen).
  • Adjustment to the deferred tax rate — a per-category percentage adjustment where a category is measured at a different rate.

These are analysed across P&L, OCI and Equity so the opening position is consistent with where the deferred tax is recognised.

What flows through to the rest of Corporation Tax?

The opening balances and rates feed the Timing differences and Tax account templates, giving the brought-forward deferred tax position against which the current-period movement is measured.

Where the data comes from

  • The categories the opening balances are recorded against come from DT disclosure categories - setup.
  • The opening balances and rates you enter here feed the Timing differences and Tax account templates as the brought-forward deferred tax position.

Frequently asked questions

When do I need to use this template?

Most often when setting up a file for the first time, or where opening timing difference balances and deferred tax rates need to be entered or corrected.

Which sign do I use for unrecognised timing differences?

Enter unrecognised timing differences with the opposite sign to the total timing difference for the category.

How do I deal with a change in the deferred tax rate?

Enter the opening rate and an adjustment to it (and, where relevant, a per-category rate adjustment); Silverfin applies the adjusted rate to the opening balances.

Why record P&L, OCI and Equity separately?

Because deferred tax movements can be recognised in different places; splitting the opening balances keeps the analysis consistent.