Question on a Technical Article Published on ACCA's Website

Hello all,

I was reading a technical article on ACCA’s website titled “ECONOMIC VALUE ADDED VERSUS PROFIT-BASED MEASURES OF PERFORMANCE – PART 1”

When they calculated the adjusted capital employed at 1 January, I noticed they added the non cash expenses incurred during 2009 to the 2010 calculation. They did not add the non cash expenses to the 2009 calculation even though the same amount of expenditure was incurred in the said year.

So I have 2 questions:

1. Why didn’t they add back the cash expenses incurred in 2009 to 2009 figure?
2. Why did they add back the expenses incurred in 2009 to the 2010 figure?

Thank you always for the amazing work!

Hamad