Financial Reporting Sept Dec Sample question no 31

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March 3, 2020 at 5:50 am #563800
malavika146
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In Financial Reporting Sept Dec 2018 Sample Question No 31, the NCI is included in Capital Employed while calculating Return on Cap Employed and the Equity in Gearing calculation. Request you to please explain the rationale of including NCI under Capital Employed?
March 4, 2020 at 7:53 pm #564259
P2-D2
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Hi,

Capital employed by definition is equity plus net debt. NCI is part of equity and so included within the calculation.

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