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APV

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

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • December 9, 2015 at 2:16 pm #289615
    bonezege
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Hi sir,
    sometimes issue cost is added to the loan raised to give the total amount on which interest is paid. Sometimes too the issue cost is ignored.Please clarify.
    Thanks

    December 9, 2015 at 3:01 pm #289644
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    It depends whether the issue costs are coming out of the finance raised (leaving only the net amount available for investing) or whether they are being paid in addition to the amount raised for investing.

    It means reading the question carefully, but if it is not clear then just (as always in P4) state your assumption.

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