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Prior charge capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Prior charge capital

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • July 9, 2018 at 11:41 am #461405
    lavenite
    Member
    • Topics: 13
    • Replies: 5
    • ☆

    Hello Mr. Moffat,

    In several questions involving prior charge capital, I sometimes see overdraft & short-term loans being excluded from the calculation of prior charge capital. Is there something I’m missing out since isn’t it technically part of prior charge capital?

    Thank you for your time!

    July 9, 2018 at 4:07 pm #461422
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51920
    • ☆☆☆☆☆

    Prior charge capital is referring to long-term capital, which does not include short-term borrowings.

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