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One final question sir before paper tomorrow, hope i do well,
Sir i was doing a comparison of chhumura co and cmc co june 14,
Now i had asked previously regarding tax depreciation method, but the issue is that in both the method is used is same which is subtracting allowable depreciation from incremental profit and then apply tax, however in both cases thata done correctly, but why in cchmura co we have to add back the tax depreciation? And in cmc we are not adding back ,
And in another question the gamalan project its not added back as well, whats the reason? Is it that in apv question we dont add back and international appraisal we add back?If depreciation has been subtracted in the table of cash flows, then it has to be added back because it is not a cash flow.
If however, it has just been deducted in workings in order to calculate the tax, then it doesn’t need adding back because it was never deducted in the table of cash flows in the first place.
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