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BAZEELE MAR/JUN 18

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › BAZEELE MAR/JUN 18

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarKen Garrett.
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  • June 12, 2020 at 12:46 am #573538
    Avatarosamasyed123
    Participant
    • Topics: 51
    • Replies: 42
    • ☆☆

    Hi there sir hope you are doing well
    Im curious about the calcuation of NOPAT figure given in the mark scheme
    As you didnt deduct any accounting or economic depreciation in calculating NOPAT figure in the lectures im confused as to why the examiner has
    Thankyou

    June 12, 2020 at 7:56 am #573555
    AvatarKen Garrett
    Keymaster
    • Topics: 10
    • Replies: 10657
    • ☆☆☆☆☆

    No sure what you mean. In the examiner’s answer to calculate NOPAT, accounting depreciation was added back ($6m) and economic depreciation was deducted ($14m).

    The capital employed was also adjusted for the historic effects of the different types of depreciation.

    We at OpenTuition have not produced and answer for this question, so I don’t know what you mean by “As you didn’t deduct any accounting or economic depreciation…”

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