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Dear sir,
When calculating the impact on SOFP, could I include the items of the adjustment on Profit after tax into current assets and retained earnings?
Current assets
2347+902(increase in current assets)+256(interest saved)+343(return on additional NCA)+51(return on additional CA)-454(loss on profit from EV clubs)
=3445Retained earnings
7917+(1331-1135)+3884
=11997As according to the mar/jun 2018 Q1, the new forecast on current assets and reserves also included the adjustment from profit after tax. Could I also use the same calculation method in Q2?
Thank you.
In Eview the question is asking for the immediate impact on the SOFP, not the impact in 1 years time.
So although the forecast profit for next year will change, this will not affect the retained earnings immediately – it will affect the retained earnings in 1 years time.
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