Company Valuation Under IFRS : Interpreting and Forecasting ...

Company valuation under IFRS
2. CCA accounts
Inflation 2.50%
Asset life (years) 3.0
Real cash on 39.71%
cash return
Year 0 1 2 3 4
CCA gross
balance sheet
Opening gross capital 0.00 100.00 210.00 330.75 347.29 5.0%
Capital expenditure 100.00 105.00 110.25 115.76 121.55 5.0%
Retirements 0.00 0.00 0.00 (115.76) (121.55) 5.0%
Cl gross cap before 100.00 205.00 320.25 330.75 347.29 5.0%
inflation adj
Inflation adjustment 0.00 5.00 10.50 16.54 17.36 5.0%
Closing gross capital 100.00 210.00 330.75 347.29 364.65 5.0%
Cumulative 0.00 34.15 106.67 112.00 117.60 5.0%
depreciation
Cum depr/gross 0.00% 16.26% 32.25% 32.25% 32.25%
closing capital
CCA net
balance sheet
Opening net capital 0.00 100.00 175.85 224.08 235.29 5.0%
Capital expenditure 100.00 105.00 110.25 115.76 121.55 5.0%
Depreciation 0.00 (34.15) (72.52) (121.10) (127.15) 5.0%
Inflation adjustment 0.00 5.00 10.50 16.54 17.36 5.0%
Closing net capital 100.00 175.85 224.08 235.29 247.05 5.0%
CCA profit and
loss account
Cash flow from 0.00 41.69 87.56 137.90 144.80 5.0%
operations
Depreciation 0.00 (34.15) (72.52) (121.10) (127.15) 5.0%
Profit 0.00 7.55 15.04 16.81 17.65 5.0%
CCA ROCE
Profit 0.00 7.55 15.04 16.81 17.65 5.0%
Opening capital 0.00 100.00 175.85 224.08 235.29 5.0%
ROCE 0.00% 7.55% 8.55% 7.50% 7.50%
Reconciliation
CCA profit 0.00 7.55 15.04 16.81 17.65 5.0%
Supplementary 0.00 0.81 4.19 16.01 16.81 5.0%
depreciation
HCA profit 0.00 8.36 19.22 32.82 34.46 5.0%
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