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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Que 38 Blackcutt
d part
What is the depreciated replacement cost approach yamd where do we use it
If you want to measure FV of ‘old’ plant and equipment, it’s a method that could be used. Very fashionable in the 1980s!
If equipment was 5 years old out of 10, you would value it at 5/10 of replacement cost.
