If div’s are paid, then we use NI instead of equity? If no div’s are paid, we only use equity. Thanks
What is ACM?
I assume ACM means All current method? Why would we use NI over equity??
I am incredibly lost on this question.
To my understand you would always use Equity as exposure under the all current method regardless of dividends…under temp/remeasurement you would only use net monetary assets…
ACM means all current method… I read it somewhere in my notes, just trying to confirm. What I mean, is that if div’s are paid, the equity component will be reduced by the amt of the divs, therefore meaning we would use the actual net income… Im kinda confused as well. Havent come across any questions as such either. . Thanks
You might not want to stick to that… that may only work in year 1 of the investment, as there may be zero equity leading up to that… just remember that for ACM it is EQuity and Temp. is net mon. assets…(Cash+A/R) - (STD + LTD + A/P…)