to calculate EVA, i know the provision for deferred tax hv to add back to operating profit and capital employed.
1)my question is will the deferred tax affect tax payble ? the tax payable i mean here is for calculating the nopat ( operating profit - tax payble). can u show me an example?
2)for non cash expenses, we added back to OP. Do we have to add back to CE too?
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EVA
https://www.accaglobal.com/content/dam/acca/global/pdf/sa_july11_perfmeasurement.pdf
all you need to know for eva, i doubt we will get a complex question on eva
i have read it but that question did not have deferred tax. i want to know whther deferred tax will affect tax payble in the calculation of nopat.
No - it will not.
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