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Burung co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Burung co

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • February 26, 2021 at 1:11 am #611723
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir when we are told in this question that realisable value of the asset is POST-TAX $4m, then why do use this figure for balancing allowance, shouldn’t we have used the PRE-TAX figure?

    February 26, 2021 at 8:22 am #611759
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54656
    • ☆☆☆☆☆

    What tax would you be taking about and what tax rate would you assume to get a pre-tax figure???

    The mention in the question of it being after any tax was unnecessary and irrelevant.

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