Rationale for initial recognition exception
An entity acquires an asset for €1,000 which it intends to use for five years and then scrap (i.e. the residual value is nil). The tax rate is 40%. Depreciation of the asset is not deductible for tax purposes. On disposal, any capital gain would not be taxable and any capital loss would not be deductible.
Although the asset is non-deductible, its recovery has tax consequences, since it will be recovered out of taxable income of €1,000 on which tax of €400 will be paid. The tax base of the asset it therefore zero, and a temporary difference of €1,000 arises on initial recognition of the asset.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
