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Please help to clarify this issue in greater detail.
It seams to be logical that for tax purpose value of asset is Nil as cash is not yet received therefore tax base is Nil.
However definition of tax base of asset is confusing.
According to it why tax base is not £1000? The cash that entity will receive in the future will be taxable and there are future tax deductions or not?
tax base of asset=future tax deductions=1000It would be more sensible for tax base of an liability : tax base=carrying value less future tax deductions=1000-1000=0
‘…remaining is a prepaid expense recognized as asset in balance sheet.dis amount as being paid in cash, has already been allowed by tax authority,means deducted already on cash basis from taxable profits.so we have already gained tax benefit from it.so tax base is nil(remember tax base of an asset is the amount that is allowable in the future for tax purpose)’
I find difficult to understand tax base of assets.
If prepaid expenses are assets and cash receipts were already deducted – it means that no further deductions will occur in the future. Now according to Ias12:
-TB should equal to CA (Prepaid expenses have already been deducted in determining an entity’s current tax liability for the current or earlier periods-so future economic benefits will not be taxable) or
-Nil – as the amount that will be deducted in the future is 0. ???I think this may depend on how far are you with F4 and F9, how many hours a week could you spend on P2..
Setting max 3 number of resits would cause that not many student would even think about doing Acca. It would be too risky to start. Imagine someone who pass all F papers at first time, and then fail last P level paper 3 times (maybe just couldn’t cope with stress, pressure to complete)
Time limit is also not sensible in my opinion, as there is always reason behind delay.
There are students who have plenty of time to study, don’t work or work a couple of hours per week, healthy, with no family commitments.
There may be also students that for certain period had to suspend studying or doing only few hours per week due to variety of reasons: full time work (tiredness), serious illness, small children, sth else happened.
Besides I think If someone want to finish this qualification and become professional he will be sooner or later, if not enough determined-will give up anyway…I have the same question, but on Acca webside is only stated that exams must be completed within 10 years. Some people saying that attempted the same paper many times. What will happen if for egz someone pass 13 out of 14 exams in 10 years time and does not to manage to complete one because of failures? Anyone have experienced that situation or heard what would happen then?