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BPP Practice and Revision Kit – question 15 Tippletine

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › BPP Practice and Revision Kit – question 15 Tippletine

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • August 25, 2022 at 12:49 pm #664241
    otacca
    Participant
    • Topics: 6
    • Replies: 1
    • ☆

    Hello,

    Why is the tax allowable depreciation not added back in the calculation after the calculation of the tax?

    Thank you

    August 26, 2022 at 7:26 am #664289
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    TAD is only added back if it had previously been subtracted in arriving at the net cash flows, because of the tax being calculated within the statement of cash flows.

    Here the tax has been calculated separately, so no TAD has been subtracted in the cash flows and so there is nothing to add back.

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