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Post-tax interest saved

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Post-tax interest saved

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • May 27, 2021 at 11:30 am #621898
    alawi sayed
    Participant
    • Topics: 154
    • Replies: 168
    • ☆☆☆

    Hi Mr Chris,

    for chapter 19 ,diluted EPS

    why we have to take the interest saved after the tax even though we know that the tax comes after the finance cost in P&L,

    why we have to consider the tax here,

    Thanks,

    May 29, 2021 at 8:02 am #622108
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    Hi,

    We are looking at the impact on the earnings figure, i.e. after tax, and so need to look at the net interest expense saved after tax.

    Thanks

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