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IAS 12 - Example (accelerated capital allowances) - ACCA Financial Reporting (FR)

VIVA Subject Guide
YouTube video

7 Comments

  1. Manuga
    Why didn't you deduct the residual value from the asset's value when calculating depreciation for the reducing balance method?
  2. Argentina
    With reducing balance method we do not substract any residual value from the original cost.
    I hope this helps.
  3. magictec
    Hello Chris. In the first example, the question says capital allowances are available at 25pcnt reducing balance. Why did you still use straight line method to depreciate the asset.
    Please i need a reply.
  4. haider
    It's reducing balance
  5. Blessing
    Hi. The straight-line method was for the accounting depreciation. Tax depreciation/allowance was on reducing balance. There are both different.
  6. Sushant
    Really good lecture, detailed content is very helpful
  7. aarti
    Can't agree more!

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