cash flow

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cash flow

Postby chandniwadhwani92 » Tue Nov 18, 2014 5:25 am

How free cash flow to the firm and equity are calculated under ifrs ?????/

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cash flow

Postby edupristine » Fri Nov 28, 2014 6:46 am

Under IFRS Interest expense is considered as CFF then your formula will exclude the after tax interest “interest (1-t)” , it’ll become:

FCFF = CFO - Fixed Capital Investment ( or CAPEX)

same thing goes for dividends if they are part of CFO, then you need to adjust for it.

Return to “CFA Level I”



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