gearing when equity is negativeForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › gearing when equity is negativeThis topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts March 27, 2022 at 5:06 pm #652044 ABDULLAHI312ParticipantTopics: 106Replies: 97☆☆☆Hi, i got this confused. when the equity of an entity shows negative balance due to retained losses, what happens to the gearing? will we use negative equity and get negative gearing(preferably debt/equity)? thanks March 27, 2022 at 5:57 pm #652060 John MoffatKeymasterTopics: 57Replies: 54513☆☆☆☆☆You would show a negative figure, but it would be pretty meaningless. It doesn’t ever happen in the exam!AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In