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apportionment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › apportionment

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • May 14, 2015 at 3:17 pm #245959
    Smith
    Member
    • Topics: 20
    • Replies: 54
    • ☆☆

    Dezda Co can borrow at base rate plus 1% in Malaysia and base rate plus 1.5% in South Africa.

    Base rate in South africa is 8.30% and in Malaysia is 6.25% (these are annual figures)

    I want the 6 month figure so should I first apportion the original base rate and annual figures and then add on the excess on top of base rate or should I first add on the excess to the base rate and then apportion that total figure by 0.5?

    May 14, 2015 at 4:35 pm #245970
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    You should add the 1% and 1.5% to the relevant annual rates, and then you should divide by 2 to get six month rates.

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