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Debt equity ratio

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Debt equity ratio

  • This topic has 3 replies, 2 voices, and was last updated 12 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 7, 2013 at 11:00 pm #121867
    hasanali95
    Member
    • Topics: 239
    • Replies: 248
    • ☆☆☆

    In gearing ratio do we include bank overdraft as a component of debt?

    April 8, 2013 at 6:16 am #121879
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54764
    • ☆☆☆☆☆

    There is no fixed rule – it depends whether the overdraft is intended to remain the long-term or not.

    Unless the question makes it clear (long-term or short-term) then the examiner accepts it either way (included or not included).

    April 8, 2013 at 9:34 am #121896
    hasanali95
    Member
    • Topics: 239
    • Replies: 248
    • ☆☆☆

    Thanks sir 🙂

    April 9, 2013 at 8:26 am #121945
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54764
    • ☆☆☆☆☆

    You are welcome 🙂

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