Financial reporting- goodwill question
Shruti (CA Student) (178 Points)
06 February 2015Shruti (CA Student) (178 Points)
06 February 2015
shriram
(CA in Practice)
(86 Points)
Replied 06 February 2015
FMP calculation is as simple as past year's average (which is expected to repeat in future). You need not worry about Capital employed in that.
But to find out Industry expected return => you may have to use Closing Capital employed x Industry return % (ICAI has suggested the closing capital employed always and has given the avg CE as an alternative answer). In my view, closing CE sums up everything
K Shriram, FCA