Definition of Adjusted Cost Base ACB

Definition of Adjusted Cost Base ACB

The adjusted cost base ACB is primarily n I cone tax term. It often implies the changes that occur in the value of the assets book.

Brief Explanation of Adjusted Cost Base ACB

These changes could come about as a result of new purchases which are made. Other factors includes the improvements that are carried out and the sales and other pay-outs’. The adjusted cost base can either be calculated on a single unit basis as well as per unit basis. The value of the assets book can also be subsequently adjusted. This would mean that if the assets’ underwent a certain change or some improvements’ were made to the asset then the book value would also be subject to adjustment. Once the changes to the book value are applied then a newly adjusted cost base can then be calculated to estimate the profit or loss that might be incurred if the asset us sold. According to certain legal policies applied in selected jurisdiction the adjusted cost must be used as the assets’ cost for capital profits purposes.

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