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opening net assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › opening net assets

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • July 8, 2021 at 8:54 am #627209
    xyzc
    Participant
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    In calculating the residual income and return on investment, should the opening net asset figure be used for calculating the cost of capital or the closing net asset figure

    July 8, 2021 at 4:43 pm #627233
    John Moffat
    Keymaster
    • Topics: 56
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    • ☆☆☆☆☆

    The opening net assets (on the basis that it is they that are earning the profits for the year). Unless, obviously, the question specifies different.

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