Starfish Ltd, dec 2011 exam question.
The company ceases to trade on march. it accounting period usually ends in december. when they calculated for captial allowance , a laptop was purchased in the 3 month time and no AIA was given for it. what could be the reason? is it because AIA is not given for ceasing period?
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AIA
Yes in the final period of trading there will be no AIA, no WDA and no FYA! We compute balancing adjustments only on cessation.
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