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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › FA85 Pool
When calculating chargeable gain on share pool for a company (involving rights issues, etc), I find it easier to deduct the indexation allowance (multiplied by the proportion of shares disposed of) at the end, instead of using the standard 3 column method which keeps a ‘rolling’ indexed value of all the shares. Will I be penalised for using this method?
yes you will – do it the proper way, do not try and short cut.
Thank you for taking the time to reply – I will spend a couple of hours learning the proper methodology.
I hope it will not take that long for all we are doing is to compute indexation allowance every time shares are purchased (not on a bonus issue) and when shares are sold.