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Do we have to work on balancing allowance/Charge in the last year for assets disposal if After Tax RV is given in any question.???
Further please explain what is the difference between After Tax RV & After Any Tax Effect RV…?
Thanks..
If the realisable value is given after tax, then there is no need to calculate a balancing allowance/charge.
However do state your assumption (i.e. that the figure has already taken account of the balancing allowance). In so many questions in P4 things can be interpreted in different ways. Provided you state your assumption (and it is reasonable) then you will get the marks, even if the examiners answer makes a different assumption.
After tax, and after any tax effect, would normally mean the same thing (unless there was something else specifically mentioned).
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