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Tax Allowable Depreciation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Tax Allowable Depreciation

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • November 28, 2014 at 10:51 am #214031
    Benjamin
    Member
    • Topics: 6
    • Replies: 14
    • ☆

    Dear John,

    Based on December 2013 Q1 Answer (Appendix 1), the suggested answer showed that we less depreciation before tax, and add back depreciation again subsequently. Would it be ok if we do not less depreciation first and just add the tax allowable depreciation(ie 25% x 125) after calculating the profit after tax. (Assuming that there’s no balancing allowance)

    November 28, 2014 at 12:22 pm #214081
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54682
    • ☆☆☆☆☆

    Yes, it will give the same answer 🙂

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