• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Adding back items to SPL and SFP for Economic Value Added

Forums › CIMA Forums › Adding back items to SPL and SFP for Economic Value Added

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Cath.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 4, 2018 at 2:42 pm #424888
    sharadkapoor
    Member
    • Topics: 12
    • Replies: 0
    • ☆

    Dear sir,

    In the Economic Value Added problems, we add back interest payable, non-cash expenses, etc. to the Statement of Profit/Loss, but in the SFP, I notice that in Exercise 5, on Page 46 of the notes, we have added back non-cash expenses, R&D expenses, etc. to the ‘Capital Employed’,
    but…
    Why haven’t we added back interest payable?
    Just like we added back non-cash expenses, R&D, etc., why haven’t we added back Interest payable too?
    Because, as you will recollect, interest payable was added back to the SPL. Why not to the capital employed?

    Thank you, Warm Regards

    January 21, 2018 at 8:37 pm #431867
    Cath
    Participant
    • Topics: 0
    • Replies: 448
    • ☆☆☆

    Hi, Thanks for your question.
    The interest costs in EVA calcs are already deducted by the WACC % charge on the cost of capital so we don’t deduct them again.

    We find EVA by taking profit after tax but before interest. The adjustment amount you see in exercise 5 is adding back the tax effect.

    Kind Regards

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • smuuo on FM Chapter 8 Questions – Relevant cash flows for DCF
  • hikati on ACCA BT Chapter 16 – Performance and appraisal interviews – Questions
  • hikati on ACCA BT Chapter 15 – How an individual can develop – Questions
  • Salimbek909 on The Management Accountant’s Profit Statement – Absorption Costing – ACCA (MA)
  • hikati on ACCA BT Chapter 12 – Theories of motivation – Questions

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in