[raq]

Hi guys, re EVA calculation:

1. I don’t think R&D should have been adjusted to capital employed as it was mentioned in the question that all of that was incurred during the current period.

2. Post-tax interest charge is added back only if you start from profit after tax but the junior started from operating profit so post-tax interest charge did not need to be adjusted for

My only worry is that I highlighted that marketing capitalised should not be added back because if it was capitalised in the first place then there is nothing to add back (i.e. no expense was made in the period so nothing to add back). But I just looked at June 2014 model answer and the use the same terminology i.e. “marketing capitalised” to add back marketing that was clearly expensed there. However I can only hope that examiner will appreciate that it was not clear whether the marketing spend was expensed in the period or capitalised in the period.

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