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Ma’am I want to understand how can both
1. increase in operating profit margin (and operating profits) and
2. decrease in operating profit margin(and operating profits) both be indicators of overtrading?along with ofcourse the usual increase in revenue and decrease in cash
Don’t know and neither are specific examples in ISA 570 – examples in IAS 570 include:
– Negative operating cash flows indicated by historical or prospective financial statements.
– Substantial operating losses or significant deterioration in the value of assets used to generate cash flows.
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