Sir
1)Net assets are Assets - liabilities OR Assets - Current liabilities?
2) Secondly , In june 2015 Yogi question, where examiner has calculated ROCE excluding division (20x4), for capital employed he has done following
29200-7200-7000 = 15000
I do not understand that why he has subtracted 7000 above? Can you please explain
Ask the Tutor ACCA FR
Net assets
7y ago#1Hi,
1) Net assets = assets (current + non-current) - liabilities (current + non-current)
2) Capital employed is equity plus net debt. Equity comes straight from the SFP, and the net debt is the interest bearing debt less any cash. Have a look at the question again and see if this helps you work out the calculation above. If it doesn't then let me know.
Thanks
Sign in to reply to this topic.