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Asset ceiling

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Asset ceiling

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • July 10, 2021 at 1:40 pm #627367
    Jiya024
    Member
    • Topics: 168
    • Replies: 56
    • ☆☆☆

    Dear Professor,

    I came across this definition of asset ceiling in my notes:

    “This is known as applying the ‘asset ceiling’. It means that a surplus can only be recognised to the extent that it will be recoverable in the form of refunds or reduced contributions in the future.”

    professor, how can something be recoverable without ever being invested in the first place? like how are reduced contributions recoverable?

    July 11, 2021 at 9:20 am #627423
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    Recoverable = we will get some benefit in some way.

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