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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Ratio Analysis
Sir I want to ask that when we are evaluating the financial statements then can we comment on tax figures?
This is because in some questions the tax rates (if we calculate from figures) are dramatically increasing, that are causing the profits much reduced..
I think I would usually ignore tax,in P3. At most, the rate might come into PESTEL, but only of the question said that the government planned to change the rate.
Thanks Sir, but can it be come to a threat as these profits would link to the dividends and if shareholders are not satisfied then they might eject their money?
Yes, rising tax rates can be a threat.
Hello Sir?
On ratios…is it better to show the ratio workings in the answer script or do it on scrap paper/or an appendix and just bring it into the analysis without showing how it was derived?
I am getting conflicting advices on this.
Thank you.
If you have time, show workings. This allows you to more easily check your figures and see where they came from.
