Indexed Cost of Acquisition Calculator

Calculate Indexed Cost of Acquisition





Formula

To calculate the Indexed Cost of Acquisition (ICOA):

\[ \text{ICOA} = \frac{\text{CII(yot)} \times \text{COA}}{\text{CII(fy)}} \]

Where:

What is Indexed Cost of Acquisition?

Indexed cost of acquisition is a concept used to determine the value of an asset after adjusting it for inflation. It is a method of accounting for the impact of inflation on the cost of acquiring an asset over time. When an asset is acquired, its cost is typically recorded in monetary terms at purchase.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{ICOA} = \frac{300 \times 1000}{200} = 1500 \text{ dollars} \]

The Indexed Cost of Acquisition is $1500.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{ICOA} = \frac{250 \times 2000}{150} = 3333.33 \text{ dollars} \]

The Indexed Cost of Acquisition is $3333.33.