Hi John,
Regarding Question 2 (a), why is the profit on sale of the Ev club the (premium+value using FCF) - net book value of non-current asset?
Why Do we use the net book value of NCA? I don’t understand why they use this figure.
Also, isn’t the value of the firm 6135?
If so, why are we not just taking the premium as the profit?
I appreciate your time.
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December 2017 (Eview cinema)
7y ago#1The question is asking for the SOFP, and so this is prepared using financial accounting 'rules' - the NCA's are always shown at net book value in SOFP's.
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