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Okay. But I had downloaded the AFM formula sheet from the ACCA website but it did not have the SD table.
So I just wanted to confirm whether this will be available in the question exhibit if it has been specifically asked to calculate VAR.
okay. Got it sir.
So if such type a question is asked in the current exam we can assume that the depreciation is equal to the cost of maintaining the assets (if there is no separate value given for replacement non current asset investment) and deduct it from cash flows right.
(iii)Major investment in intangible assets just before the reporting date
This statement is correct because an investment in intangible assets means an increase in total assets. We can also calculate Capital employed as Total assets less current liabilitiies. And hence capital employed increases and ROCE falls.
(iv)An upwards revaluation of land in the year
This option is correct because an upward revaluation increases the revaluation surplus and hence the capital employed increases. And hence the denominator increases. This results in a fall in ROCE.
