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cima-p2

Economic Value Added - CIMA P2

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5 Comments

  1. Syed
    Can someone explain why there is a tax adjustment on the interest but not on the non-cash expenses and R&D?

    many thanks.
  2. Sarasi
    Hi,

    Could you please explain why non- capitalized lease value doesn't impact NOPAT in this example? (note 2)

    Thank you in advance.
  3. edith33
    Dear Sir,

    I would like to know what does it mean by capitalized and non-capitalized?

    What is the treatment for capitalized R&D expenses?

    Please reply!
  4. Abuzar
    Hi John

    Well explained lecture sir.

    I just wanted to know, why we didn't add non cash expenses net of tax like in 2014 added amount should have been 11*0.7=7.7.

    Please reply!

    Thanks
  5. Christopher
    Hi John. Great lecture, as always. Thank you.

    In regards to adding back Development Costs to NOPAT, "because these should be capitalised". I thought Development Costs were typically Capitalised?

    Does this mean we should add back the Depreciated element of the Capitalised Costs in the year, to NOPAT.

    Or is this assuming the particular Development Costs did not qualify to be Capitalised?

    Thanks

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