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F6/P6 closing rule for trading profit and loss

Forums › ACCA Forums › ACCA ATX Advanced Taxation Forums › F6/P6 closing rule for trading profit and loss

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by bassaniobroke.
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  • March 25, 2014 at 12:15 pm #163006
    yyjie
    Member
    • Topics: 4
    • Replies: 2
    • ☆

    It is hard for me to understand F6/P6 closing rule
    For instance 1
    year end 31 Dec.2011 profit 54000
    year end 31 Dec.2012 profit 23835
    year end 30 sep.2013 loss (13500)
    overlap profit:8300
    The trading loss 2013/14:
    (13500)+(8300)=(21800)

    For instance 2
    year end June.2014 loss (20000)
    year end Dec.2014 loss (17000)
    overlap profit:7600
    The trading loss for 2014/15:
    (20000)+(17000)+(7600)=(44600)

    Why the treatment in instance 1 is not 23835+(13500)+(8300) like instance 2?

    March 25, 2014 at 7:01 pm #163044
    bassaniobroke
    Member
    • Topics: 48
    • Replies: 256
    • ☆☆☆

    Perhaps in instance no 2 they have carried forward loss to setoff in next year. In instance no 1 it not loss but profit of 23835/=
    Let me know from which book or kit you saw these examples and may be I can explain you further.

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