• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Balance allowance/charge

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Balance allowance/charge

  • This topic has 9 replies, 3 voices, and was last updated 14 years ago by shaojia.
Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • October 24, 2010 at 10:34 am #45670
    shaojia
    Member
    • Topics: 2
    • Replies: 7
    • ☆

    Hello everyone:

    There is a question confused me: as we calculate the capital allowance in the last project year, when the balance allowance or charge should be claimed? I saw the answer said “no allowance claimable in the last year as after-tax realisable valuve give” why?

    Thanks.

    October 30, 2010 at 2:15 pm #69726
    shaojia
    Member
    • Topics: 2
    • Replies: 7
    • ☆

    Somebody pls solve it out

    October 31, 2010 at 7:32 am #69727
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 5
    • ☆

    I did not not see the question you want solved. All the same, in case you do not understand what those words mean, Balancing allowance is allowed for tax at corporation tax rate where upon scraping the company’s asset on which capital allowance had been claimed and its less than the the written down value. i.e wdv>disposal proceeds then the diff. allowed for tax @ tax rate. the exact opposite is balancing charges

    October 31, 2010 at 5:05 pm #69728
    shaojia
    Member
    • Topics: 2
    • Replies: 7
    • ☆

    Thanks for your explaining,Sephfem

    So as you said, the capital allowance is always claimable if wdv>disposal proceeds, and balance charges if wdv

    November 1, 2010 at 5:42 pm #69729
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 5
    • ☆

    i will review the question and get back to you. u would have made my work easier by telling me the question number and perhaps page

    November 2, 2010 at 1:53 pm #69730
    shaojia
    Member
    • Topics: 2
    • Replies: 7
    • ☆

    The question in FTC is Q9 pg 14
    and in BPP is Q15 pg 14

    Many thanks

    November 4, 2010 at 10:34 pm #69731
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 4
    • ☆

    Shaojia,

    The tax claimable on account of balancing allowance or payable on account of balancing charge has been already adjusted with the yr 5 realisable value. So it is not to be considered in the CA calculations.

    This is what I understood.

    November 5, 2010 at 12:49 pm #69732
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 5
    • ☆

    in the sleepon question only 250,000 of the 400,000 cost of the project is to be subjected to capital allowance computation at 25%reducing balance over 4 years so at the end of the 4 yrs wdv will be nil, as such there will neither be balancing charges nor allowance. the after tax realisable value relate to the part of the project cost not subject to capital allowance computation. besides its been valued after tax and has nothing to do with balancing charges or allowance. I do hope u find dis view invaluable

    November 6, 2010 at 4:24 pm #69733
    shaojia
    Member
    • Topics: 2
    • Replies: 7
    • ☆

    Rave,

    Thanks for your help,I think I should review this question more carefully.

    November 6, 2010 at 4:32 pm #69734
    shaojia
    Member
    • Topics: 2
    • Replies: 7
    • ☆

    Sephfem,

    Thanks, it makes sense, but i will think it for a while.

  • Author
    Posts
Viewing 10 posts - 1 through 10 (of 10 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • nabeelafatima on Using Information Systems – ACCA Performance Management (PM)
  • John Moffat on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures
  • Fangzi on The cost of capital (part 1) – ACCA (AFM) lectures
  • Coffeeice6 on What is Assurance? – ACCA Audit and Assurance (AA)
  • khalid.zaheer on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in