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EVA calculation- Cantor, June 2014. Q1.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › EVA calculation- Cantor, June 2014. Q1.

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.
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  • October 28, 2018 at 9:35 am #480022
    kaffie
    Participant
    • Topics: 7
    • Replies: 26
    • ☆

    Dear tutor,

    This question is silent as to whether the accounting depreciation charged in the income statement is equal to the economic depreciation, although the solution suggests that it is, hence why no adjustments were made in respect of this when calculating the NOPAT

    If a question is silent on this, do we assume that this is always the case ? (i.e. accounting depreciation in the income statement is equal to economic depreciation) when calculating the NOPAT figure?

    Thank you.

    October 28, 2018 at 1:13 pm #480050
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    Yes, that is really the only assumptiin you can make. To do anything else implies making up your own figures.

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