20% off ACCA & CIMA Books

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

opening net assets

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
July 8, 2021 at 8:54 am #627209
xyzc
Participant
- Topics: 413
- Replies: 175
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: 57
- Replies: 54701
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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.