As per my understanding, Capital Employed equals Shareholders' Funds + Non- Current liabilities or Total Assets less Current Liabilities or Non-current Assets + Working Capital.
However, in recently published audited / unaudited Quarterly / Half-Yearly results of Companies, the representation of Capital Employed is different. In these statements the Capital Employed is shown to be equal to Shareholders' Funds. The Non- Current Liabilities have not been considered in computing the Capital Employed.
Can someone throw light on this please?
CAclubindia
