June 2017 Q1

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April 22, 2018 at 4:06 pm #448453
samko
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Hi mike
In Q1, we are requesting to use analytical procedures to evelaute risk of materia misstatement.
In the official answer, gearing ration in Fy2016 is (80/80+ 221)x100=26.6%
Why is 80/80?

Thanks in advance in your guidance
April 22, 2018 at 5:10 pm #448456
MikeLittle
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There should be brackets round (80 + 221) to give us the denominator of 301

Gearing can be calculated as borrowing as a percentage of total capital employed and total capital employed is calculated as (borrowings + shareholders’ funds)

Does that explain it?
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