What Is Weighted Average Cost of Capital WACC?
Even a small error in one of these variables—especially the cost of equity—can significantly skew the final result. WACC is not just useful for internal stakeholders; it’s also valuable for shareholders and potential investors. A well-managed WACC demonstrates strong financial stewardship, smart capital allocation, and a commitment to sustainable growth—all positive indicators for investors. By […]
Our machines are fully depreciated, but we still use them! What shall we do? Making IFRS Easy
The impact of accumulated depreciation on asset value is multifaceted, affecting not only the book value of assets but also the financial decision-making process. Moreover, the continued use of fully depreciated assets can impact maintenance and repair expenses. As these assets age, they often require more frequent and costly repairs, which are recorded as operating […]