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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Depreciation and finance leasing
Hello
I am preparing an income tax report and I’m currently at the adjustment stage.
one of my notes states:
Depreciation includes £1600 on an item of plant and machinery acquired under a finance lease. The interest charge in the statement of profit or loss is £1780. Depreciation is charged at a rate of 10% per annum on a straight line basis and a full years depreciation is charged in the year of acquisition.
Im finding it difficult to find information on a P&M finance lease, am I correct in thinking the 1600 is deducted from the remaining depreciation amount is added back? and do I put 10% of the interest charge in the deductions?
thanks for your help
You will not find any reference to leases in your F6 material as it’s not in the syllabus so no need to work exercises that involve them – keep your studies to material prepared specifically for the F6 exam!