BasisForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › BasisThis topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts August 19, 2018 at 8:25 pm #468550 mjibolaParticipantTopics: 131Replies: 135☆☆☆I’m confused with basis points!If debt is available at 5.2% less 30 basis points, is this 0.052 – 0.003?If 10% less 100 basis points, is this 0.100 – 0.010? Correct?Mar Jun question 2. Please explain how there’s a “tax relief loss” for years 2 to 5? Thanks a lot. August 20, 2018 at 6:06 am #468569 John MoffatKeymasterTopics: 57Replies: 54808☆☆☆☆☆1 basis point is 0.01%. (so 5.2% less 30 basis points is 5.20 – 0.30 = 4.90%)With regard to your second question, please say for which year the question is in. August 20, 2018 at 6:18 am #468576 mjibolaParticipantTopics: 131Replies: 135☆☆☆2018 sorry August 20, 2018 at 6:27 am #468584 John MoffatKeymasterTopics: 57Replies: 54808☆☆☆☆☆In year 1 there is a loss for tax purposes of 14,650. Therefore there is no tax payable, and the loss is subtracted from future years taxable profits.AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In