Sir I came a question where they have included director's loan as part of equity in calculating ROE. So why are loans from directors part of equity although shown as non-current liability?
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Director's loans
10y ago#1I would suggest that the treatment depends whether the load is in the nature of long term capital employed or whether it is a short term affair to get the company through a temporary financial crisis
The scenario you quote suggests that the loan is in nature a part of capital employed, long term financing
Ok?
Right. Thank you.
10y ago#3You're welcome
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