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!!
Ask the Tutor ACCA AFM
economic and book depreciation
9y ago#1That 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.
This topic is locked — no new replies.