• 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

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

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

Capital Allowances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Capital Allowances

  • This topic has 5 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • May 22, 2015 at 9:44 pm #247998
    sehrish
    Member
    • Topics: 13
    • Replies: 29
    • ☆

    Hi tutor,
    Please explain how we will treat the situation if it is written
    Depreciation expense for the last year was $6.2m and was calculated on reducing balance basis of 25% per year. This matches what is allowable for tax purposes.
    What will be the tax allowable depreciation in the next year?
    Kindly elaborate
    Thanks

    May 22, 2015 at 10:15 pm #248005
    sehrish
    Member
    • Topics: 13
    • Replies: 29
    • ☆

    And I want to ask that is index calculation is part of p4 syllabus
    If so then please direct me to an online lecture
    Thanks

    May 23, 2015 at 8:44 am #248063
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    If depreciation was 6.2M then the written down value before charging it must have been 6.2M / 25% = 24.8M.
    So the written down value after charging it would be 24.8M – 6.2M = 18.6M

    Therefore next years depreciation is 18.6 x 25% = 4.65M

    May 23, 2015 at 8:46 am #248064
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    It depends what you mean by index calculation!

    If you are meaning price indices, then calculation of them would certainly not be asked but I suppose they could be relevant somewhere (they are assumed knowledge from Paper F2).

    If you want a lecture on them, then you can find one in the Paper F2 lectures.

    May 24, 2015 at 9:27 am #248289
    sehrish
    Member
    • Topics: 13
    • Replies: 29
    • ☆

    Thank you so much for your help

    May 24, 2015 at 11:01 am #248361
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 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

  • John Moffat on The financial management environment – ACCA Financial Management (FM)
  • Lekhanaa on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • wZaidhan on Sources of Finance – Islamic Finance – ACCA Financial Management (FM)
  • manahylilyas on The financial management environment – ACCA Financial Management (FM)
  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)

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