Calculating capital employed

Hi, The current and non-current elements of the borrowings are included within the interest bearing debt as they will be accruing interest and the funds will have been used to help invest in making a profit. Thanks

Thank you! If I may follow it up with another question, I wanted to calculate the operating profit margin for a group of companies using their consolidated statement. Should I include the Share of loss/profit from associates when calculating operating profit?

And just to follow up on my previous question, when calculating capital employed do we include the value of the non-controlling interest as stated on the statement of financial position?

Hi! I managed to find the solution for my last two questions, but in the process came across another issue. Assuming my consolidated sfp has the following Capital and reserves attributable to the Company’s equity holders Share capital Share premium Revaluation reserve Translation reserve Retained earnings Proposed dividends Non-controlling interest Should I add all these up when calculating the value of the shareholder's funds? Or should I omit the Revaluation reserve and the Translation reserve? Thanks

@shawn15 said: Thank you! If I may follow it up with another question, I wanted to calculate the operating profit margin for a group of companies using their consolidated statement. Should I include the Share of loss/profit from associates when calculating operating profit?

You're welcome! No, we would not include this as part of operating profit as it comes from our investments effectively. Thanks

@shawn15 said: And just to follow up on my previous question, when calculating capital employed do we include the value of the non-controlling interest as stated on the statement of financial position?

No worries. Yes, NCI is part of equity and so would form part of the capital employed (=equity + net det). Thanks

@shawn15 said: Hi! I managed to find the solution for my last two questions, but in the process came across another issue. Assuming my consolidated sfp has the following Capital and reserves attributable to the Company’s equity holders Share capital Share premium Revaluation reserve Translation reserve Retained earnings Proposed dividends Non-controlling interest Should I add all these up when calculating the value of the shareholder's funds? Or should I omit the Revaluation reserve and the Translation reserve? Thanks

Shareholders's funds is effectively the equity section so you would include everything in the equity section. One thing that shouldn't be in your figures above is the proposed dividends. They are just disclosed and not accounted for. Thanks