• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Opentution notes chapter 9 example 3 Lease or Buy

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Opentution notes chapter 9 example 3 Lease or Buy

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 15, 2019 at 8:01 am #501987
    manan66
    Member
    • Topics: 20
    • Replies: 31
    • ☆☆

    Sir,

    In buy option why do we take the tax saving from year 1 onwards and why is it taken for 5 years?

    but when we take it in lease option the tax savings is from year 2 onwards for 4 years..

    in previous chapters (7 & 8) we usually take the tax saving from 2nd year onwards if we pay tax 1 year in arrears..

    Waiting for reply.

    Thank you

    Manan

    January 15, 2019 at 2:52 pm #502067
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    But I explain the reason in my lectures where I work through this example.
    (I assume that you are not using the notes without watching the lectures, because that would be pointless. If you are not watching the lectures for any reason then you must buy a Study Text from one of the ACCA approved publishers and study from there.)

    The question says that we buy the machine on the last day of an accounting period, therefore the capital allowances would be calculated immediately and the tax saving would occur one year later.
    The first lease payment is made at the start of an accounting period, therefore they will reduce the profit calculated at the end of the accounting period and the resultant tax saving will occur 2 years later.

    January 15, 2019 at 4:14 pm #502107
    manan66
    Member
    • Topics: 20
    • Replies: 31
    • ☆☆

    i got it now.. thanks for ur reply.

    January 15, 2019 at 5:05 pm #502118
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Opentution notes chapter 9 example 3 Lease or Buy’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on The financial management environment – ACCA Financial Management (FM)
  • Lekhanaa on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • wZaidhan on Sources of Finance – Islamic Finance – ACCA Financial Management (FM)
  • manahylilyas on The financial management environment – ACCA Financial Management (FM)
  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in