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Hi
What is the actual period limit for short life assets ?
Is it the year of acquisition(till the year end)+ eight years
or within eight years from acquisition?
for eg: If a short life asset is brought on 1st sept 2012 and if the company makes accounts to 31 st march of every year, till what date the asset will be pooled on short life asset pool and from what date it will be transferred to main pool?Hi Sabrin look at page 33 of your Course Notes where you will find the answer to your question – then confirm back to me what the answer is!!
thank you tutor well i was referring bpp material which confused me .I think the answer is like this:
the asset can be pooled till 31st march 2021 and it will be transfeered to main pool from 1st april 2021 if the asset is not disposed within 31st march 2021.
Am i right?Absolutely right in respect of the dates but just one further point in respect of your original question – each short life asset is kept separate in its own “pool” if you want to use that term, but there is no pool of short life assets as the whole point of the election is when the individual asset is sold off for what is expected to be low sale proceeds a balancing allowance will arise upon its disposal!
thank you sir it was informative.
so u meant each short life assets are pooled seperately and will have balancing allowance /charge when they are disposed
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