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long term capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › long term capital

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 28, 2019 at 8:19 pm #506888
    rouquinblanc
    Participant
    • Topics: 19
    • Replies: 18
    • ☆

    Hello

    This might sound like an easy one but is long term capital = shareholder capital + reserves + long term liability as well as being = fixed asset?

    As one question stated that the depreciated asset was used as the base for ROCE

    thank you

    February 28, 2019 at 8:46 pm #506901
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    Picture the SOFP.

    NCA + CA = SC + Reserves + Long term liabs + CL

    Long term capital = SC + Reserves + Long term liabs

    So this equals NCA + CA – CL

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