The text says that in the opening years we apportion AIA & WDA but not the FYA.
In the example why do we only apportion WDA by 9/12 and the AIA is 100%.
Thank you
Agata
Ask the Tutor ACCA TX-UK
Basis period for capital allowances example 5
AIA is 100%! What we apportion is how much expenditure is available for AIA. If you look at the answer you will see that the annual 500,000 limit is time apportioned to
9/12 x 500,000 = 375,000
This is more than big enough to allow all the AIA qualifying expenditure of the period to have the 100% AIA
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