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Hi
Why is amortisation of goodwill added back versus deducted for EVA calculation?
Regards
Ed
In general, EVA does not want non-cash items deducted from income. Amortisation of goodwill is a non-cash adjustment, so the charge needs to be added back for each year (it will already have been deducted in the income statement) . The accumulated deductions are added back to capital employed.
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