Fund from operation

Harish (CS Executive) (386 Points)

15 May 2010  

Messer’s XYZ Ltd. Provides the following information:  Net Profit before income tax = Rs. 40000, Depreciation charged during the year = Rs. 10000, Goodwill written off during the year = Rs. 10000, Income Tax for the year = Rs. 20000.  Calculate fund from operation. 

Please explain what is the treatment of income tax.  And what will be the difference in treatment if net profit after tax is provided.