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Tax allowable depreciation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Tax allowable depreciation

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • January 27, 2025 at 5:20 pm #715009
    LuxetVeritas
    Participant
    • Topics: 24
    • Replies: 20
    • ☆

    Hello, Sir

    I am confused about one thing : in one place, I saw tax allowable depreciation deducted net cash inflows to arrive at taxable profits, and after that, added back to the profits, and in another example, tax allowable depreciation was multiplied by tax rate, and added after the tax payment as a tax saving. Can you please explain the difference?

    Thanks in advance

    January 28, 2025 at 8:30 am #715025
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54815
    • ☆☆☆☆☆

    There is no difference – either approach will give the same answer.

    Have you watched our free lectures on this?

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