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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › EVA for Stillwater service dec-2012
Hi all,
I have a quesion regarding the EVA calculation for the dec-12 question #3 (Stilwater).
How to treat the deferred tax adj of $0.5 made 2012 considering that no deferred taxes were accrued in previous year?
My understading is that the movement from year to year (in this case the whole accrual) should be added back to arrive at NOPAT. In the answer provided on the ACCA website the deferred tax accrual is ignored in both NOPAT and CE calculation.
Thanks in advance
Deferred tax is treated like a non-cash expense and movements are ignored in favour of tax paid.