Financial Arrangements Flashcards
1
Q
What are the allowable deductions for financial arrangements?
A
Interest Incurred
- The capital limitation is overridden
Negative BPA
- The general limitation is overridden
2
Q
What are the financial Arrangement rules?
A
Accrue a reasonable amount of income and expenditure
Disregard the distinction between capital/revenue
3
Q
What does is not a financial arrangement?
A
Bets Employment Interest in a partnership Interest in LTC lease Shares or options
4
Q
Spreading Method
A
Calculate income/expenditure
AND
Allocate to the income year
5
Q
Straight-line methods
A
NON-IFRS Taxpayers
Total FA < $1,850,000
6
Q
Formula A
A
total finance charges /#periods = Income/expenditure for period
7
Q
Total finance charges
A
Debtors = payables LESS recivable Creditors = Recievables LESS payables
8
Q
Base price Adjusrtemts Formula
A
Consideration - Inc + Exp + Amount remitted
9
Q
What does a - and + BPA mean?
A
Positive = Assesable Income Negitive = Deduction (Interest Incurred)
