• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

EAC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › EAC

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 24, 2015 at 1:36 pm #284899
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    I learnt that if we ignore taxation when calulating EAC, we should use before tax WACC . But I just wonder the effect when we ignore capital allowance.

    November 24, 2015 at 3:44 pm #284929
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    I assume that you are referring to Replacement questions.

    You only ignore taxation is the question specifically tells you to, and if there is no taxation then there won’t be any capital allowances, and tax will be ignored in the calculation of the WACC 🙂

    (Obviously it is not practical, and usually do you include tax in both the cash flows and in calculating the WACC, but if the questions says to ignore then we ignore 🙂 )

    In general, not getting the benefit of capital allowance on its own will make a project less worthwhile. However when comparing different replacement periods it is impossible to know in advance whether or not it will affect the replacement period – it would still mean calculating the EAC for each possibility.

    November 24, 2015 at 8:40 pm #285003
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    Thanks 🙂

    November 25, 2015 at 7:54 am #285091
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • kartierclass on AA Chapter 9 Questions
  • revathik on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Josfel on Relevant cash flows for DCF Taxation (example 4) – ACCA Financial Management (FM)
  • askar.turganbayev@gmail.com on AA Chapter 2 Questions
  • RashidMh on MA Chapter 1 Questions Accounting for Management

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in