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The use of annualise equivalent method in P5

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The use of annualise equivalent method in P5

F5, P5 - USING ANNUALISED EQUIVALENT METHOD

In F5 Assets replacement decision - Short/medium term investment decision making
.
In P5 Annuity depreciation method

they make use of cumulative discount factor of annuity in decision making

For more check CIMA article linked in the blog - Short term decision making

Please Highlight other known uses.

May 10th 2014 AN ACCA USER 8,730 Points

2 Replies

0 Votes
I'm not sure exactly what this method is, please explain someone
May 12th 2014 AN ACCA USER 420 Points
0 Votes
To Philip Sagar Singh
http://saka-accounting.blogspot.com/2014/05/divisional-performance-measure-part2.html
Copy and paste link in your browser.
Annuity Depreciation should be fairly known topic at P5. This uses annualized equivalent method.

 http://saka-accounting.blogspot.com/2014/04/short-term-decision-part1.html
This link above brought forward knowledge form F5. Here we see how assets replacement decision is made using annualized equivalent method.
Further, check CIMA article linked at the bottom of the page.
May 12th 2014 AN ACCA USER 8,730 Points
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