- This topic has 0 replies, 1 voice, and was last updated 5 years ago by .
Viewing 1 post (of 1 total)
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › ACCA Forums › ACCA FM Financial Management Forums › why it's incorrect: ROCE
is below sentence incorrect to describe ROCE?
ROCE can be defined as profit before interest and tax divided by the sum of shareholders’ funds and prior charge capital.
my understanding about prior charge capital is long term liability, which is non- current liabilities. isn’t correct?
what is interest-bearing finance? how should I understand ” capital employed is measured as equity plus interest-bearing finance, i.e. the long-term finance supporting the business. This usually includes all lease liabilities, whether they are shown as current or non-current”. Should it elaborate as equity + non-current liabilities?
if so, prior charge capital = interest-bearing finance = non – current liabilites?
Thanks