- This topic has 1 reply, 2 voices, and was last updated 5 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
How was your exam? Comments & Instant poll >>
OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Accounting for inflation in DCF, December 2018 exam Q.3
(Sorry to bother you again – AFM exam 2 weeks tomorrow!)
John, in the examiner’s answer to this question, why are the 4 years of operating cash flows left at their nominal amounts and not uplifted by the (differing) inflation rates given in the question?
Many thanks, Brian
The question does not say that the flows are at current prices and therefore the estimates must have already taken inflation into account.
The inflation only applies to the working capital.