EVA

This topic has 3 replies, 2 voices, and was last updated 12 years ago by Ken Garrett.

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October 17, 2013 at 1:45 pm #142994
evalstngj
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With reference to the above technical article part 1 example 3 – Adam Co’s. May I know why R & D on project Z of $500,000 was not included in capital employed adjustments in 2009 despite being deducted from income in both years. Thanks in anticipation
October 20, 2013 at 11:06 pm #143256
Ken Garrett
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I’m not sure what technical article you are referring to, but it would be usual to add R&D back to P%L and the capital employes. If it’s not written off, it must be capitalised.
November 12, 2013 at 12:00 pm #145612
evalstngj
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Technical article on Economic Value Added (EVA)
November 12, 2013 at 12:51 pm #145615
Ken Garrett
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EVA uses the capital at the start of the financial period. The first R&D expense is during 2009, so that has not been charged to the opening capital of 2009.
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