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Which is correct ?? Why In ism using this formula?? Equity also includes psc ,but why in ism ,they separately also added the PSC in this ?? Total assets?? Give formula of total assets of liability side formula??
Answers (7)
In general the term Equity in Debt Equity Ratio includes PSC, unless otherwise there is a specific mention for separation of computing any ratio. Even the ism had followed the same. But in this problem it is excluded. So it is advisable to solve the problem including PSC only and to mention a note saying, alternatively computations may be done excluding PSC and correspondingly values differ
vishwam mandepudi
Including PSC in equity is preferable.
Thankyou sir, may i knw why institute use like this includes psc
Thread Starter
Sathiya BamaThankyou sir, may i knw why institute use like this includes psc
Different bodies have different interpretations of the ratios. Its not like mathematics where we have specific formulae.
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