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economic and book depreciation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › economic and book depreciation

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 28, 2017 at 9:03 am #374701
    vapiano91
    Member
    • Topics: 26
    • Replies: 55
    • ☆☆

    if both economic and book depreciation are given, is this treatment right in the FCF to firm method?

    Profit before tax
    Add: book depreciation
    less: economic depreciation

    and the remaining exactly as we do normally?

    There are no tax implications of economic depreciation right?

    Thankyou!!

    February 28, 2017 at 4:35 pm #374760
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54754
    • ☆☆☆☆☆

    That is correct, but economic depreciation was only in the past relevant when being asked to calculate EVA.

    EVA is no longer in the syllabus for Paper P4.

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    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘economic and book depreciation’ is closed to new replies.

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