Home › Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA Advanced Financial Management (AFM) Exams › 6. Foreign investment appraisal – Example 4
- May 5, 2020 at 11:21 am
Why maintenance expenses not tax deductible when calculating tax.May 5, 2020 at 4:15 pm
I have absolutely no idea as to which book you found the example in !!
If you will be more specific then I will try and answer.May 6, 2020 at 4:13 pm
My apologies, I was referring to Example 4 on page 40 of the opentuition AFM notes and the answer given on ACCA (AFM) lectures – Discounted cash flow techniques (part 3).
The question stated
“An amount equal to the amount of the tax allowable depreciation is required each
year for the maintenance of non-current assets.”
Why it’s the maintenance taken as a deductible expenses to calculate tax?May 7, 2020 at 10:11 am
You have a valid point in that the expenses would probably be allowable for tax.
However as I do explain the free lecture working through this example, this is something that the current examiner regularly puts in questions and he always ignores any tax implication.
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