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Stephen Widberg.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › EBITDA
Hi tutor,
plz i have few questions regarding EBITDA /Financial reporting 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
EBIT and EBITDA – no accounting standard defines – so it’s up to company to disclose basis of calculation
Only earnings for EPS is defined in an accounting standard
Non-operating may or may not be the same as non-recurring – again it is up to the company
Your questions have highlighted the problems of APMs!