ACCA Taxation F6 Practice Exam 2026 – Complete Study Resource

A short life asset pool is established to group together certain capital assets that have a useful life of less than a specified period, which, for tax purposes, is typically two years. The main purpose of this pool is to simplify the depreciation of fast-depreciating assets. It's designed to facilitate the immediate write-off of costs associated with these assets in a way that allows businesses to manage their tax obligations more efficiently.

The correct choice refers specifically to fast-depreciating assets, essentially capturing those that lose value quickly due to their nature or usage. This includes things like computers, equipment, and machinery used in a business context, which are expected to have lower utility in a shorter time span.

On the other hand, options relating to assets requiring extensive management, assets purchased for resale, or long-term investment assets do not accurately describe what is intended by a short life asset pool. These other types of assets either have longer depreciable lives, require different treatment under tax regulations, or are classified separately under various tax rules, which is why they are outside the scope of the short life asset pool. Thus, the focus clearly remains on the efficient handling of fast-depreciating assets, supporting businesses in their fiscal and operational strategies.