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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Specimen 1 (i)
The figures are foe the year ended 30 june 20×5. In capital employed calculation beginning balance was taken to get the adjusted balance. I don’t understand the reason why “change in period” excluded from the calculation to reach final figure of capital employed?
Thank you so much more,
Bizuayehu From Ethiopia
EVA always uses the OPENING capital employed, so profits for the year are irrelevant. The marketing spend adjustment is to get the opening figure corrected for prior expenditure which, under EVA, is regarded as capital.
Thank you so much Sir.