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vogel co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › vogel co

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 18, 2017 at 7:07 am #416365
    shilpamary
    Member
    • Topics: 98
    • Replies: 81
    • ☆☆

    q45 vogel ,bpp revision kit,in calculation of nedge cash flow why dont we add back depreciation ??

    November 18, 2017 at 8:03 am #416385
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    Because of note (vi) in the question.

    It says that the depreciation is the same as the amount of investment needed to maintain operations.
    So although depreciation itself is not a cash flow, the investment of the same amount is a cash outflow.

    This is something that the current examiner does a lot of times 🙂

    November 18, 2017 at 9:56 am #416400
    shilpamary
    Member
    • Topics: 98
    • Replies: 81
    • ☆☆

    ohh i had doubt whether this was bec of that investment outflow.thanks for confirming it. 🙂

    November 18, 2017 at 10:08 am #416408
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘vogel co’ is closed to new replies.

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