标题: FCINV, net investment or not???? [打印本页] 作者: dvilayphet 时间: 2011-7-13 15:14 标题: FCINV, net investment or not????
So typically the "real world" calculation for FCF uses FCINV as "CAPEX", or the expenditure on fixed assets. It does not net out the disposition of fixed asset.
However in the text i remember reading multiple times about fixed capital investment being netted with dispositions of fixed assets.
Then on the afternoon mock in 2009, it asks for FCF, provides both investment in fixed assets and sales of fixed assets under the CFI section, and only uses investment.
So wtf, which one do they want us to use?作者: CPATrader 时间: 2011-7-13 15:14
if a specific outlay is given, per the exam in the notes section use it. if given a B/S use change in gross fixed assets, if given a CF statement use that years investment作者: wizofoz 时间: 2011-7-13 15:14
I think I read something about this somewhere here, try to search forum.作者: needhelp1700 时间: 2011-7-13 15:14
My understanding is that FCInv = capex - sale of LT assets = change in gross PPE - sale of LT assets
so if you are given a B/S, you have to take gross assets2009 - gross assets 2008 to arrive at capex, then look for sale of LT assets and subtract them out.
if you are just given capex, that is already representing the change in gross assets so no need to take any delta.作者: luda002 时间: 2011-7-13 15:14
now a question...
what if you are provided Net PPE?
CP作者: RMontgomery 时间: 2011-7-13 15:14
add depreciation to get gross PPE作者: mp3bu 时间: 2011-7-13 15:14
nope
you do
change in Net PPE + Depreciation Expense = Capex...
CP作者: eoin 时间: 2011-7-13 15:14
yea.
i meant for each year take the Net PPE + dep. then take the delta, which gives you capex. so same thing.作者: llxx 时间: 2011-7-13 15:14
You will not be given depreciation for the two years... you will be given Balance sheet for two years, and depreciation in the income statement for current period...
just so you are thinking straight!
CP作者: SeanWest 时间: 2011-7-13 15:14
Well then the mock is wrong, which i suspected.作者: economicz 时间: 2011-7-13 15:14
If a cash flow statement is provided, just look under the CFI section.
NO EXCUSES作者: jacksparrow 时间: 2011-7-13 15:14
I KNOW to look under the CFI section (see the above 20 posts), the point is that the CFI section gave both "investment in fixed asset", and "proceeds from sale of fixed asset", and used only the investment portion in the FCF calculation (as opposed to the readings which say to use the net).作者: 19831985 时间: 2011-7-13 15:14
markCFAIL Wrote:
-------------------------------------------------------
> I KNOW to look under the CFI section (see the
> above 20 posts), the point is that the CFI section
> gave both "investment in fixed asset", and
> "proceeds from sale of fixed asset", and used only
> the investment portion in the FCF calculation (as
> opposed to the readings which say to use the net).
Ok, but why would you take into account proceeds from the sale of fixed assets? That is distractor information. The formula instructs us to use FC Inv, not Net FC Inv. This is no excuses material.
NO EXCUSES作者: ryanlb 时间: 2011-7-13 15:15
because the text makes multiple references to "FCINV" being "net" investment..... hence the point of the thread?作者: kickthatcfa 时间: 2011-7-13 15:15
markCFAIL:
I struggled with the same question. So what's the consensus? Net FCINV or not?作者: OmarAdnan 时间: 2011-7-13 15:15
CFAI book says net作者: maryli 时间: 2011-7-13 15:15
Wow, just checked the Stalla material and guess what? It is net FC. Honestly, I'm starting to get tired of these @#$%& formula notations that leave out the detail.
