Hi tutor,
plz i have few questions regarding EBITDA which I would really appreciate your clarifications.
i know that we take the figure before deducting interest expense.
1- but what about interest income (what to do with it plz)?
2- whats the difference between adjusted EBITDA and the normal EBITDA ?
3- for calculating EBITDA or
EBIT ( operating profit)
-gain on disposal of nca
-impairment loss
- provisions (for end of service / doubtful debt/ inventory obsolence)
those 3 items are they classified as ((operating expense )) and must deducted from revenue to arrive to EBIT or are they ((non operating expenses )) and must not been included in this performance measure?
4- i believe the term non operating expense is different than non recurring expense (extra ordinary expense)
but both must not been involved in EBIT or EBITDA Calculation plz advise
Many thanks
Ask the Tutor ACCA APM
EBITDA
4y ago#1Sorry, but the only formula I know is:
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
Most of what you ask is really to do with financial reporting and APM is very unlikely to raise any of these complications.
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