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question 25 TRUNK LTD study note

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › question 25 TRUNK LTD study note

  • This topic has 2 replies, 2 voices, and was last updated 11 years ago by Avatarjosy87.
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  • September 13, 2014 at 2:39 pm #194870
    Avatarjosy87
    Member
    • Topics: 172
    • Replies: 215
    • ☆☆☆

    Hi Sir
    Please Sir I don’t understand why on purchase of 500 shares of 20th February, there is not indexation as
    164.5-150.9
    —————– X 16479. before bonus. I know it is the same amount but I I want to if the
    150.9
    indexation amount is for the bonus issued if yes why the purchased of 500 shares has not indexation?

    September 14, 2014 at 9:12 pm #194956
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3960
    • ☆☆☆☆☆

    Indexation allowance IS applied on the purchase of shares is February 1996! There is no indexation on the bonus issue as no cost is incurred! Have you worked through the OT course notes chapter on this, where it is clearly stated that we do not index on a bonus issue!

    September 19, 2014 at 1:34 pm #195527
    Avatarjosy87
    Member
    • Topics: 172
    • Replies: 215
    • ☆☆☆

    ok thanks Sir

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