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Bad debts provision treatment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Bad debts provision treatment

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by Tax Tutor.
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  • April 25, 2014 at 12:34 pm #166266
    qureshi
    Participant
    • Topics: 2
    • Replies: 0
    • ☆

    I have a question regarding bad debts provision while calculating tax adjusted trading profit. Can you please explain proper treatment of these provisions?

    April 25, 2014 at 4:37 pm #166295
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Provisions such as for bad debts are not allowable, impairment of a trade debt is allowable and this should now be the term used in the accounts and in an exam question.

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