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Hi Sir,
I had a query about the rounding of numbers which are calculated with .5 on the end.
In maths, I am familiar with the rule to round up a number if it has .5 or higher on the end, e.g. 96.5 is rounded up to 97.
However, I have noticed that in some questions from my Kaplan books, the answers have rounded up a number in this position, and other times rounded down.
I found an old post about it by someone else who had similar query:
https://opentuition.com/topic/0-5-round-up-or-down/
From what they have said, is it the case that if a figure will reduce tax liability, it is rounded up, and if a figure will increase the taxable income/liability, it is rounded down?
I would be grateful for your confirmation on this, as I have had my answer differ from some answers in the book due to a rounding up/down difference.
Thank you.
By all means check out the ACCA website to see if a rule exists but this really does not matter and will make no difference to the marking of your script. There are way more important things that you should be focused on right now!!
In real life tax rounding is down to the nearest pound for income and tax calculations and up for any tax credits but I repeat it does not matter and you will be marked right whatever way you go as far as I am aware. You will not be marked wrong because of a rounding – now concentrate on what the questions are going to ask you to do!
Good luck in the exam!
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