Hi,
While calculating FMP some books have taken the profit for the year since the data is given, while in some books the y have ignored the first years profit stating that we cant compare those profits from the earlier years and average has taken accordingly.
Can anyone let me know which one is correct??
TIA
To Compute the FMP all the profits of past year should be comparable. if profit of any year is not comparable with the profits of other years then do following -
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