• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

why it's incorrect: ROCE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › why it's incorrect: ROCE

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 17, 2019 at 5:23 pm #513290
    amysnowy
    Participant
    • Topics: 72
    • Replies: 25
    • ☆☆

    Hi Tutor

    is below sentence incorrect to describe ROCE?

    ROCE can be defined as profit before interest and tax divided by the sum of shareholders’ funds and prior charge capital.

    my understanding about prior charge capital is long term liability, which is non- current liabilities. isn’t correct?

    what is interest-bearing finance? how should I understand ” capital employed is measured as equity plus interest-bearing finance, i.e. the long-term finance supporting the business. This usually includes all lease liabilities, whether they are shown as current or non-current”. Should it elaborate as equity + non-current liabilities?

    if so, prior charge capital = interest-bearing finance = non – current liabilites?

    Thanks

    April 18, 2019 at 4:07 pm #513416
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    Hi,

    Don’t get too confused with ROCE. From a FR perspective the capital employed is the equity plus net debt. Net debt is any interest bearing debt (current and non-current) less and cash.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • omerbasheer on The Statement of Financial Position and Income Statement (part d)
  • Kim Smith on AA Chapter 9 Questions
  • Walkera on Basic Variance Analysis part 1 – ACCA Performance Management (PM)
  • kartierclass on AA Chapter 9 Questions
  • revathik on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in