Page 52 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 2

You will be familiar with the standard proforma from the previous chapter, a reminder
is as follows:

Proceeds X
Less: incidental costs to sell (X)
Less: incidental costs to buy (X)
Less: original cost of asset (X)
Less: enhancements (X)
––
X
Compensation for inflation (% X cost) (X)
––
Taxable gain X
––
The taxable gain will then be charged at the appropriate tax rate for that accounting
period.

42