Sir in the notes it is stated that If expenditure qualifying for AIA exceeds the AIA limit, the AIA should be allocated firstly to special rate expenditure before main
pool expenditure. Then why in pratice question 11 the excess AIA of 6,500 is allocated to main pool and not special rate pool?
Ask the Tutor ACCA TX-UK
practice question 11
There is NO special rate pool expenditure incurred in that period! The expenditure in the period is all main pool. I think you have misunderstood the meaning of the statement - work through Illustration 3 in chapter 5 (and watch lecture if in doubt) in the notes which demonstrates what the statement means.
Sign into reply to this topic.