Capital Employed
This query is : Resolved
18 June 2010
Experts please clarify me on capital employed computation.
There are 2 ways of Capital Employed computation.
One through liabilities side Share holders Fund + Long Term liabilities (i.e. Debentures, Secured Loan etc.)
Second one being Assets side Fixed Assets + Working Capital
Please let me know any other item such as (P&L - Debit balance) has to be deducted while computing both the methods.
Is there any other item which has to be considered for computing capital employed.
Thank you,
With regards,
Rajesh
There are 2 ways of Capital Employed computation.
One through liabilities side Share holders Fund + Long Term liabilities (i.e. Debentures, Secured Loan etc.)
Second one being Assets side Fixed Assets + Working Capital
Please let me know any other item such as (P&L - Debit balance) has to be deducted while computing both the methods.
Is there any other item which has to be considered for computing capital employed.
Thank you,
With regards,
Rajesh
CMA Ramesh Krishnan
(Expert)
18 June 2010
Under Liabiliies side methos which is Share holder fund if you already not considered p&l Dr balance need to be deduct and under asset method not necesary
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