IndigoLearn

Forums

Back

Buy Back of Shares

Accountancy

Do we have to consider Current liabilities also for calculating debt:equity while checking But Back conditions? In some solutions they have considered and in some they haven't. So please do confirm.

Shridhara H U

CA Inter

★ 550

07-Jan-25 23:32

171

Answers (4)

No need to take unless borrowings are given. Make a note stating that current liabilities do not include debt

CA Suraj Lakhotia

Admin

08-Jan-25 07:24

Sl better to take assumption and solve that total debt does not include current liabilities right?

Thread Starter

Shridhara H U

CA Inter

★ 550

08-Jan-25 07:32

Yes. Same thing what i mentioned

CA Suraj Lakhotia

Admin

08-Jan-25 07:32

Yeah. Thank you Sir 😊

Thread Starter

Shridhara H U

CA Inter

★ 550

08-Jan-25 07:34