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pilot q1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › pilot q1

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • March 3, 2017 at 10:12 am #375272
    Anonymous
    Inactive
    • Topics: 16
    • Replies: 4
    • ☆

    Tad is considered when calculating tax why it’s not add back after taxation

    March 3, 2017 at 10:36 am #375287
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54717
    • ☆☆☆☆☆

    The cash flow summary shows the profit before tax – no tax allowable depreciation has been subtracted because it is not a cash flow.

    The workings for the tax have calculated the tax after TAD, which is correct, and so the tax is a cash flow which appears on the cash flow summary.

    Since TAD has not been subtracted in the actual cash flow summary, there is no need to add it back.

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  • The topic ‘pilot q1’ is closed to new replies.

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