gearing when equity is negative Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › gearing when equity is negative This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat. Viewing 2 posts - 1 through 2 (of 2 total) Author Posts March 27, 2022 at 5:06 pm #652044 ABDULLAHI312 Topics: 82Replies: 68☆☆ 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 MoffatKeymaster Topics: 57Replies: 49595☆☆☆☆☆ You would show a negative figure, but it would be pretty meaningless. It doesn’t ever happen in the exam! Author Posts Viewing 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