Hi Chris,.
BPP has a question regarding Current Purchasing Power Accounting. Is that the same as present Value? It seems they want us to adjust for inflation which seems like Present Value, but in the other direction. Thoughts?
Kind regards
Michael

Hi Chris,
Thank you very much for the tutorial. You make this sound very simple
Sorry but I couldn’t find the “Ask the tutor” link thus asking here
I am not quite clear with the cash flow part. How did you get to the 28K? also the 5% rate will be given in the exam?
Many thanks again
Pam

Both the 28k and the 5% would be given to you in an exam question. To find the “Ask the tutor” link then click on the “Forums” link at the top of the page and you will find it there.

Hello,
great lecture. i did not get the present value technique with the discount @ 5%
you write AF 1-8 = 6.463
how dow you get the figure of 6.463 from ?

In the exam you would be given the annuity factor, or the discount factor for each of the eight years that you could then sum together.

As you’re interested the 6.463 has come from the formula 1/r[1 – (1/(1+r)^n)], were r = 0.05 and n = 8.

Have a go on your calculator and see if you can get it.

Thanks

Chris

P.S. If you have any further questions, then can you please post them on the ‘Ask the tutor’ forum on the Open Tuition website as it is easier for me to respond. Thanks.

aliboco says

Hello Chris I am still not getting the value of 6.463, pls help

sbennett says

Hi

Check ‘ Present Value of Annuity’ calculation , it may be easier for you. Don’t forget to enter interest as 0.05.

Best

aliboco says

Hello Chris I am still not getting 6.463bas a value please help.

nahidtanim says

See present value table on google

sab1 says

Thanks for the lecture. 13:26 made me laugh!

sbennett says

Hi

A net current asset value usually refers to NBV(Net Book Value) in a balance sheet.

szogun says

Hi

When we recognize an asset in SFP do we have the freedom to choose the measurement?

sbennett says

szogun

need to measure reliably

mjmaeder says

Hi Chris,.

BPP has a question regarding Current Purchasing Power Accounting. Is that the same as present Value? It seems they want us to adjust for inflation which seems like Present Value, but in the other direction. Thoughts?

Kind regards

Michael

Pamela says

Hi Chris,

Thank you very much for the tutorial. You make this sound very simple

Sorry but I couldn’t find the “Ask the tutor” link thus asking here

I am not quite clear with the cash flow part. How did you get to the 28K? also the 5% rate will be given in the exam?

Many thanks again

Pam

P2-D2 says

Hi,

Both the 28k and the 5% would be given to you in an exam question. To find the “Ask the tutor” link then click on the “Forums” link at the top of the page and you will find it there.

Thanks

dalvi97 says

How do you establish a cost for Current Cost?

P2-D2 says

Hi,

You would just identify the same type of asset and look at what it would be worth today, which is effectively its fair value.

Thanks

ryanb88 says

Great lecture. Just the right speed. Thanks!

ryanb88 says

*pace

franck1976 says

Hello,

great lecture. i did not get the present value technique with the discount @ 5%

you write AF 1-8 = 6.463

how dow you get the figure of 6.463 from ?

thank you

Franck

P2-D2 says

Hi Franck,

Glad you enjoyed the lecture.

In the exam you would be given the annuity factor, or the discount factor for each of the eight years that you could then sum together.

As you’re interested the 6.463 has come from the formula 1/r[1 – (1/(1+r)^n)], were r = 0.05 and n = 8.

Have a go on your calculator and see if you can get it.

Thanks

Chris

P.S. If you have any further questions, then can you please post them on the ‘Ask the tutor’ forum on the Open Tuition website as it is easier for me to respond. Thanks.

Sakina says

Hey Chris,

Still aint getting 6.463 value, pls help

sbennett says

Hi Sakina

The formula works , I got 6.4632127769. Perhaps, you need to check how to use a scientific calculator.