(ii) Identify the points that must be confirmed and any action necessary in order for capi

(ii) Identify the points that must be confirmed and any action necessary in order for capital treatment to

apply to the transaction. (4 marks)

(ii) Ensuring capital treatmentFor the capital treatment to apply, a number of conditions need to be satisfied such that the following points need to be/confirm/ied.– The business of Acrux Ltd consists wholly or mainly of the carrying on of a trade as oppose