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- March 13, 2018 at 11:36 pm #442517
Hello
Sir
1) the formula of gearing which is long term debt / equity. Here long term debt consist both long term liability + Preference share capital? And Equity consist both capital + reserves?
2) making operating statement under marginal costing and absorption costing in order to reconcile budgeted contribution/profit with actual profit is not examineable in F5?
March 14, 2018 at 7:23 am #4425361. Long-term debt includes redeemable preference shares. Equity is ordinary shares, plus reserves, plus irredeemable preference shares.
You are not asked much about gearing in F5 – it is in F9 that it becomes much more important.2. Actually producing an operating statement is no longer asked in F5, but you are expected to know what an operating statement is (because of Paper F2).
March 14, 2018 at 8:52 am #442557Thankyou
March 14, 2018 at 12:30 pm #442575But in long term debt, long term liability will also come na?
March 14, 2018 at 5:01 pm #442611Long term debt and long term liability both mean the same thing!
(In this context, ‘debt’ means ‘debt borrowing’)
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