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Sir I am calculating Financial gearing using book values using the formula (Prior charge capital/Equity capital) and for the Equity component I am confused whether to include Non-controlling interest or not.Please tell me what is right?
Perhaps you meant to post this to the FM or AFM forum? If looking at consolidated a/cs you’re looking at the group as whole – it doesn’t matter who holds the shares – so so since NCI is a separate component within equity it must be included in equity. (Or consider it this way – it has to be debt or equity and clearly it is not debt!)
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