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EVA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › EVA

  • This topic has 3 replies, 2 voices, and was last updated 13 years ago by Ken Garrett.
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  • June 8, 2012 at 1:08 pm #52575
    line
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    • Topics: 4
    • Replies: 8
    • ☆

    Do we need to add back the non-cash expenses when we calculate adjusted capital employed?

    June 8, 2012 at 3:07 pm #97311
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10607
    • ☆☆☆☆☆

    No. The capital employed that is used is at the start of the year so is not affected by the current year add-back to profit.

    June 9, 2012 at 2:22 am #97312
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    • Topics: 4
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    Is that means we need to add back the previous year non-cash expense to current year capital employed?

    June 9, 2012 at 2:47 am #97313
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10607
    • ☆☆☆☆☆

    Presumably all historical non-cash expenses also, but I don’t think it will be an issue in the exam.

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