Hi,
On lecture 5.3, there is a discussion of the balancing charge, which arises after the disposal is greater than the WDV of the non pool asset. In the case of your last example, the WDV after the disposal is (4,828) and you then take 80% of this to the CA column and add back to the tax adjusted net profit.
Hypothetically in the following year, since the WDV of the non pool asset is negative after disposal, am I correct in assuming that the WDV b/f for that year would be zero since there no asset available to allow for? And the non pool asset column completely disappears unless a new addition came in the following year which was a subsequent non pool asset. May be a silly question but I'd rather ask them now lol.
Thanks, and I really appreciate these lectures.
Craig
Ask the Tutor ACCA TX-UK
Disposals - Small Pools WDA & Non Pool Assets
When a non pool asset is sold a final balancing adjustment is computed and included within the CA computation of the relevant accounting period in which the asset is sold. That terminates that column in the CA computation as you rightly state above.
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