EuVECA and RCOP: Difference between pages

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''EU''
Replacement Cost Operating Profit (or Replacement Cost of sales Operating Profit).


European Venture Capital Fund (EuVECA) - such funds being the subject of the [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:115:0001:0017:EN:PDF European Union Regulation 345/2013].
RCOP is operating profit calculated and stated on the basis of the replacement cost of purchases, rather than historical cost.


The regime is optionally available to fund managers in the [[European Economic Area]] (EEA) that fall below the €500m threshold of the Alternative Investment Fund Managers Directive ([[AIFMD]]). It gives a passport for raising capital across the EEA by marketing to qualified investors and subject to registration, observance of certain rules for investment and observation of regulatory requirements. Investment has to be primarily in [[Small and Medium-sized Enterprises]] (SMEs). Borrowing (leverage) by the fund is not generally allowed.
The RCOP measure is designed to reduce the variability of reported operating profits, resulting from fluctuations in commodity input prices and related foreign exchange differences.


EuVECA is distinguished from a European Social Enterprise Fund ([[EuSEF]]) mostly by its investments which are not required to have the primary objective of achieving measurable, positive social impacts.


A fund that grows beyond the €500m limit must gain authorisation under the AIFMD - subject to which it may continue to use the EuVECA designation if it meets the other EuVECA requirements.
==See also==
* [[Cost of sales]]
* [[First in first out]]  (FIFO)
* [[Operating profit]]
* [[Profit before interest and tax]]


 
[[Category:Accounting,_tax_and_regulation]]
==See also===
*[[Social impact bond]]
*[[Venture capital]]
 
[[Category:Investment]]

Latest revision as of 19:53, 26 June 2022

Replacement Cost Operating Profit (or Replacement Cost of sales Operating Profit).

RCOP is operating profit calculated and stated on the basis of the replacement cost of purchases, rather than historical cost.

The RCOP measure is designed to reduce the variability of reported operating profits, resulting from fluctuations in commodity input prices and related foreign exchange differences.


See also

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