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APV - Issue costs

MMarina8y ago
Dear Tutor, I have another question on APV. Can we always presume that issue costs of debt are deductable expenses and deduct the tax on them, thus calculate net issue costs. I noticed that e.g. in the question Burung Co. the examiner did not deduct the tax on these costs. Thank you.
John MoffatJohn MoffatTutor8y ago#1
Unless it is specified in the question, then it is up to you to make an assumption (and to state your assumption). There is rarely just one correct answer to a P4 question. It depends on your assumption (which is exactly as it is in real life), and provided you state your assumption and it is reasonable then you still get the marks.
MMarina8y ago#2
Thank you for your explanation. Regards.
John MoffatJohn MoffatTutor8y ago#3
You are welcome :-)
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