June 2023 to March 2024 exams Watch free ACCA TX lectures
Chapter 17
LONG PERIOD OF ACCOUNT 1. Apportioning income and expenditure (a)
If a company has a period of account longer than 12 months it must be split into two
Accounting Periods (AP):
‣
the first 12 months
‣
the remaining months
(b)
The income and expenditure of the period of account is divided between the AP’s as follows:
The adjusted profits for the period of A/c
Time apportion
Capital Allowances
Separate computation for accounting period
Property Income
Accruals basis
Loan relationships
Accruals basis
Chargeable gains
Date of disposal
QCD's
Date of payment
Dividends
Date received
Example 1 A plc prepared accounts for a 15 month period to 30 June 2023. The results for the period are as
follows:
The tax written down value of plant and machinery qualifying for capital allowances at 1 April 2022
was nil. The capital transactions in plant and machinery during the 15 month period were the
purchase of second hand vans for £68,000 on 12 May 2022 and new plant and machinery costing
£200,000 on April 14, 2023.
In addition long life assets costing £310,000 were purchased on 1 June 2023.
Calculate the corporation tax liabilities for the relevant AP’s £ Adjusted profit
4,000,000
Chargeable gain (sale of asset on 6 May 2023)
80,000
Qualifying charitable donations (paid annually on 31 July)
20,000
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