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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › exampl 3 chapiter 9 replacement
Sir why the capital allowance is calculated at year 0 instead of 1 ?
There is no such thing as year 0.
0 is a point in time, time 1 is one year later, and so on.
In this example the machine is bought on the last day of the financial year (and this is time 0). Capital allowances are calculated at the end of the financial year and so they will start at time 0 as well.
I do explain this in the lecture working through this example.
