Roi and Ri in Divisions

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February 26, 2017 at 7:53 am #374266
rustamrakhmatov27
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Hello sir. Again me)
Ive come across the question some time ago that instead of giving Investment in Division, the examiner gives Balance sheet of the Division (is that even possible for Division to have balance sheet ?). So i wanted to ask, if they not giving Total investment in the Division can we get it by Total ASSETS – Current liabilities or Share Capital + Non current liabilties? (Even if division doesnt have Share capital, they have investment isnt it their portion of TOtal Share capital of the company).
Thank you!
February 26, 2017 at 2:30 pm #374334
John Moffat
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Divisions do not have share capital.
The investment in the division is simply the net assets of the division.
(And we stopped using the term ‘balance sheet’ many years ago. It is ‘statement of financial position’ 🙂 )
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