Basis period

Fiorellino

Can someone help me in understanding how to calculate the basis period and the overlap profit please? I am confused!!!!:crying:

umerali2003

yes why not

for the 1st year its simple calculation from comencing date to next 5th of april
for the 2nd year ( keep these points in your mind )

is there any accounting period ending in 2nd financial year ? yes/no
if no basis period runs from
6th apr to 5 april next year
if yes then u have 2 see
how long is that period
less then 12 m
exact 12 m
greater then 12 m

if less then 12
the basis period is the is 1st 12 months of the trade
if exact 12 m or greater then 12 m
the basis period is the 12 m to the accounting date ending in year two

OVER LAP PROFIT
once u have done with your caluclation ....... then look for those periods which have been calculated twice those are yours overlap profits

hope so this will help u if not then write a question i will try 2 help u out with the example

Fiorellino

Many Thanks!
I am actually doing some exercise following your rules and it works!!!

Thanks a Million!!! :-)

umerali2003

good to hear that its working ....... well i am hinting there will be definately a question on basis period this time bcoz last time they gave the partnership rather then a basis period so its really good for u if u have a good grip on the topic !!!!!!!!!!!!
good luck in da exam
Umer Ali