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values of index (clever people help please!)

Darron24Darron24 Feels At HomeRegistered Posts: 40
hi,

i have a question in my practice exam where i have an average value for year 1 (185.2) and year 2 (187.4) and i also have the profit and loss figures for year 1. i now have to restate these p&l figures at year 2 values. how do i do this? i am sure i haven't learnt this!

is it simply divide them by 185.2 then x by 187.4???

i need to know in case it turns up in the real thing i'm panicking now!

thanks,

Darron

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Darron24 wrote: »
    is it simply divide them by 185.2 then x by 187.4???

    I think so, that would be my logical guess, but I don't know for sure.
  • RinskeRinske Font Of All Knowledge Registered Posts: 2,453
    You are correct.

    You work it out the same way as percentages, you divide the year you want to adjust with the indexfigure for that year and then times the indexfigure for the year you want to convert it to.
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