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Roi and Ri in Divisions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Roi and Ri in Divisions

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • February 26, 2017 at 7:53 am #374266
    rustamrakhmatov27
    Member
    • Topics: 156
    • Replies: 127
    • ☆☆☆

    Hello sir. Again me)

    Ive come across the question some time ago that instead of giving Investment in Division, the examiner gives Balance sheet of the Division (is that even possible for Division to have balance sheet ?). So i wanted to ask, if they not giving Total investment in the Division can we get it by Total ASSETS – Current liabilities or Share Capital + Non current liabilties? (Even if division doesnt have Share capital, they have investment isnt it their portion of TOtal Share capital of the company).

    Thank you!

    February 26, 2017 at 2:30 pm #374334
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54687
    • ☆☆☆☆☆

    Divisions do not have share capital.

    The investment in the division is simply the net assets of the division.

    (And we stopped using the term ‘balance sheet’ many years ago. It is ‘statement of financial position’ 🙂 )

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  • The topic ‘Roi and Ri in Divisions’ is closed to new replies.

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