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issue cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › issue cost

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
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  • May 25, 2015 at 5:33 pm #248904
    Avataraishaasad
    Member
    • Topics: 159
    • Replies: 182
    • ☆☆☆

    Hi Sir,
    can you please explain while calculating the issue cost on the finance required for the project ,when do we gross up the amount of finance? As in strayer 06/02 (Q28 bpp) they have not grossed up the amount whereas in fubuki 12/10 and neptune 6/08 they have grossed up the amount required for the project

    May 26, 2015 at 7:41 am #249040
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    It is really a question of the assumptions made.
    The issue costs will either mean raising more than required (i.e. grossing up) or will have to be paid out of cash reserves. Unless the question specifically says which, then it doesn’t matter which you assume (but as always do state your assumption).

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