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Sir, when considering the ROI, the formula was profit/capital employed…I found many questions need to find the operating profit and working capital based on the information provided over the year. I wonder why depreciation needs to take into account in capital employed? (Revision practice of Q297).
Thank you
The capital employed on the SOFP is equal to the net assets in the SOFP which appear at their book value, which is after subtracting depreciation.
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