if building is used for 5 months and accounting period is of 9 months how structure building allowance will be calculated, will we apportion 3%×9/12?
Ask the Tutor ACCA TX-UK
SBA
No. 3% pa means 3% for a 12 month period, so each month gets 1/12 of 3%. So if it's in use for 5 months, it doesn't matter how long the period is, the SBAs will be 5/12 x 3%.
Sign in to reply to this topic.