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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › return on equity
HEllo Sir,
Does return on equity is calculated using profit b4 tax or profit for the year.?
I would take it as profit after tax – but it really doesn’t matter so long as you are consistent. The only time I would take profit before tax is where there is an unusual tax position – for example, there is a tax credit this year where last year was a tax charge
ok thanks
You’re welcome
