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EVA – Article 1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › EVA – Article 1

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.
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  • May 10, 2016 at 12:16 pm #314402
    meaow01
    Member
    • Topics: 23
    • Replies: 36
    • ☆☆

    Reference:
    https://www.accaglobal.com/content/dam/acca/global/pdf/sa_july11_perfmeasurement.pdf

    Amortization depends on project completion as Nick says: ” it. Project Z has not been completed yet,
    so no amortisation has taken place”

    Question:

    How relevant is this statement “The product developed by Project X went on sale on 1 January 2009 ”

    Product of R & D project going on sale ( at some dates ) affects EVA ?

    May 10, 2016 at 2:46 pm #314430
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10617
    • ☆☆☆☆☆

    I think all it means is that the product only sold during 2009 and 2010 and that the R&D expenditure has to be amortised over those two years – 750/year.

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