Ratio

This topic has 1 reply, 2 voices, and was last updated 6 years ago by Stephen Widberg.

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October 13, 2019 at 4:49 am #548955
arunotes
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Hi, when we calculate current ratio, do we need to include -Liabilities directly associated with disposal group classified as held for sale- into current liabilities?

Also, NCA held for sales, do we need to include it as current assets?

How about government grants, is it consider part of total liabilities when calculating debt ratio?
October 13, 2019 at 8:33 am #548967
Stephen Widberg
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- Topics: 17
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It’s entirely up to the analyst.

Personally, I would:
1. Include assets and liabilities HFS in calculating current ratio.
2. Exclude grant from debt / gearing ratio.
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