FRS39 Section 34A Impairment claims

Old rule – General and specific provisions for bad and doubtful debts were not tax deductible.

New rule (since Mar 6, 2006)

  1. Both individual and collective impairment must be recorded in the income statement and be eligible for tax deduction.
  2. For specific provisions to be tax deductible – subject to detailed info being available. What info? Not define by IRAS.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s