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hello sir
got some issues while revision
wat if v are not given Profit before tax shall v take the operating profit and only adjust for the things included in it
or v ourself should calculate profit before tax by subtracting finance costs etc ??
i have done this ie. subtracted finance costs to get profit before tax but wen i checked the solution it was started from operating profit and my answer was also wronganother thing is about loss before tax
how should v deal with it
iv gone for loss before tax but wen i checked answer they started it from operating loss ?
y is dat soProfit before tax is normally given. I can remember only one example where operating profit was given and we had to deduct interest expense to arrive at profit before tax. Then the first thing we did was add back the interest expense. After that we had to deduct that same figure for interest as interest paid!
But normally pbt is given
As for loss before tax – just put the figure in the top line as if it were a profit.
Put in all the other add backs and deductions – DO NOT adjust the signs – it’s still ADD back depreciation and DEDUCT profits on disposals
When you reach the bottom of Operating Activities, add up the sub-total and then, and only then, deduct or add the loss before tax figure as appropriate
OK?
Oh, and by the way, may I suggest that you cut out the text-speak? You’re not in so great a hurry that those extra micro seconds are important but worryingly it could be the case that you start writing this nonsense in your exam answers
Thanks sir
dont u worry im not use do such non sense in exams 🙂
anyhow thnks for your concern 🙂It’s taken you 5 days to type that out! You could have done it properly in 4, easily! And you can’t use the excuse of that abyssmal test match as an excuse – unless you were watching it on day one , fell asleep, and didn’t wake up again until England nearly stole it from you!
i am not a regular net user
i use it when i need it and entirely freehhahaha sir now i am writing in full
please apologise me 🙂
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