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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?
1. 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).
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