Financial performance – Example 2 – ACCA Financial Reporting (FR)
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Figures given as of March 2019 and 2018, however questions below asks for Ratios as of May 2019 and 2018. Probably it should be corrected next time while framing the lecture and the question.
The Profit before tax figure should be 12300 , it is wrongly calculated .
PBIT – Profit before Interest and tax. Operating profits were reduced by finance costs (Interest figure), so you need to use the 13000 and 11000 figures to correctly calculate PBIT. This is just an example of acca writing the data you need for the requirement in a way that’s designed to confuse you. Hopes this helps explain it a little.
Editing mistake, but that shouldn’t be a problem in this example as profit before tax isnt used in the calculations
Hi,
Would it be wrong in an exam to round the margins to the nearest % eg 55% as opposed to 54.80% for 2019’s GPM?