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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Residual Income
Please let me know; do we take net profit after interest and tax for caculating
RI or Profit before interest and tax
Before interest and tax, but in a divisional performance situation it is relatively unlikely that interest and tax will be shown as these will be taken care of by head office.
The notional interest charge takes account of interest on the capital employed by each division.
