- This topic has 4 replies, 2 voices, and was last updated 1 month ago by
.
- Posts
Are funds received from government included as non-current liabilities part of debt and included when calculating return on capital employed and gearing. Are funds received from government interest bearing debt
Is lease liability short-term or long-term. Are finance costs related to lease added to the profit before interest and tax figure when calculating return on capital employed
A government grant would be recorded as deferred income. It is neither debt nor capital employed.
Lease liabilities are split at the end of the hear into current and non-current.
The finance costs are related to borrowings so would not be deducted in the PBIT.
But in the bpp kit funds from government are included in non-current liabilities section.
Are finance costs related to lease liability added to profit before interest andt tax figure like the finance costs related to bank overdraft which are added to the profit before interest and tax figure when calculating return on capital employed.
- You must be logged in to reply to this topic.