[yencheng94]

Actually I am a P4 student. Just thought that this question is more relevant here. Do you mind explaining what we should do if there is losses in the context of p4?

Also if my understanding of what to do when losses can be brought forward correct?

Thanks beforehand!

[yencheng94]

Question doesn’t state if losses can be carried forward or not. Can you explain on both circumstances i.e. Can be carried forward and cannot be carried forward.

Can be carried forward:
does it mean I offset the losses with next year’s gain before calculating taxes on profit? For example, this year’s loss is -60m. Next year’s profit is 300m. Tax rate 30%. So tax for year 2 will be (300-60)x0.3: 72m (tax).

How about if it cannot be carried forward? What do we put for the first year’s tax column?

[yencheng94]

Thanks a lot!

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