• 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

20% off ACCA & CIMA Books

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

Money measurement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Money measurement

  • This topic has 13 replies, 2 voices, and was last updated 11 years ago by John Moffat.
Viewing 14 posts - 1 through 14 (of 14 total)
  • Author
    Posts
  • May 28, 2014 at 5:44 pm #171488
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    dear sir, what happen to net profit and non current assets when there is a rise in prices?

    May 30, 2014 at 9:38 am #171845
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    I am guessing that what you are really wanting is to know what the effect is of using historic cost accounting in times of rising prices.

    If so, then historic cost accounting understates the value of the assets on the Statement of financial position (because it is based on original cost, whereas the cost now would be higher).
    Also, it overstates the profit (because with historic cost accounting bases the depreciation on the original cost. If the depreciation were based on the current cost (which would be higher) then the depreciation expense would be bigger, so lower profit.)

    May 30, 2014 at 7:09 pm #171979
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    Yess sir I made an error thanks for understanding

    May 30, 2014 at 7:12 pm #171982
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    No problem 🙂

    May 31, 2014 at 4:23 pm #172140
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    dear sir, I guess when prices decreases then the effect is inverse i.e. assets is overstated and profits understated…please help me clear this confusion

    May 31, 2014 at 5:14 pm #172163
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    That would be true (although less likely to be asked – in general prices tend to increase rather than decrease 🙂 )

    May 31, 2014 at 5:36 pm #172171
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    Yess but I wanna confirm it because my exams are after tomorrow..hope Iwill pas..by he way sir do you have any specimen paper apart that of the acca and the open tuition because I have already practice both of them

    May 31, 2014 at 6:14 pm #172188
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Sorry but we do not have any more exams.

    Good luck on Monday 🙂

    May 31, 2014 at 7:10 pm #172196
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    Hmm its okiee.yaa hope I will pass 😀

    June 1, 2014 at 7:21 pm #172459
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    🙂

    June 2, 2014 at 4:02 pm #172734
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    thanks you for your help sir I have passed my f3 exams 😀

    June 2, 2014 at 4:28 pm #172755
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Thank you for letting know, and many congratulations 🙂

    June 3, 2014 at 6:23 pm #173356
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    Of course you help me loads thanks

    June 3, 2014 at 11:23 pm #173486
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    🙂

  • Author
    Posts
Viewing 14 posts - 1 through 14 (of 14 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

  • askar.turganbayev@gmail.com on AA Chapter 2 Questions
  • RashidMh on MA Chapter 1 Questions Accounting for Management
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)

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