Written down value rules govern block asset valuation, adjusting for additions, disposals, liabilities and successor transfers. The opening written down value equals the prior year's closing value, which is the prior year's adjusted value reduced by capital allowance and allowable ... Summary
Written down value rules govern block asset valuation, adjusting for additions, disposals, liabilities and successor transfers.
The opening written down value equals the prior year's closing value, which is the prior year's adjusted value reduced by capital allowance and allowable acquisition expenditures. The adjusted value is (A+B) - (C+D+E): A = opening written down value; B = additions; C = proceeds on sale/disposal; D = scrap value; E = deemed written down value of transferred assets; adjusted value is nil if (C+D+E) exceeds (A+B). Special formulas apply for successors in business reorganisations and for assets acquired from abroad, with foreign liability conversions and forward contract rates addressed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 1
Join Channel
TaxTMI 
