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Hello,
When computing ROCE for a Group, do we also include NCI as part of Capital employed or we only consider that part of equity attributable to owner’s of the parent?? ThanksHi,
You would include the NCI as this is part of the group equity that is being used to generate the return for the group. Remember that the equity is effectively equal to the net assets that are controlled by the parent and it is all of those net assets, not just the parent’s share, that is being used to generate the group earnings. It is for that reason that we include the NCI in the capital employed.
Hope that helps.
Thanks
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