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Current cost measurement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Current cost measurement

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
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  • Author
    Posts
  • May 9, 2020 at 1:05 pm #570398
    Haameenatadams@gmail.com
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    In the lecture video, chapter 1 on measurement. Current cost was $250,000 on 31 dec, x2 and the carrying value was stated at $200,000 on 31 Dec, x2. Does this mean for current cost depreciation is computed retrospectively?

    May 10, 2020 at 3:48 pm #570498
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7228
    • ☆☆☆☆☆

    Hi,

    If we adopt current cost accounting then we wouldn’t go back and retrospectively charge the depreciation, we’d charge it from now going forward.

    Thanks

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