• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App


Deferred consideration, Business combinations
in General IFRS Discussion by Level 1 Member (1.1k points)

2 Answers

0 votes
Cost of capital means to the opportunity cost of a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk. Thus, the cost of capital is the rate of return required to persuade the investor to make a given investment
0 votes
Cost of capital means the percentage of return an investor will expect from making the investment. If you are talking from accounting, it means different things in different conetext - for impairment this means cost of raising debt funds, for esops this means cost of equity capital.
reshown by