REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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ROCE
For post-FRS3 results, return on capital employed
is based on normalised pre-tax profit, adjusted to exclude the
cost of borrowing. Similarly, return on equity, post-FRS3, is
based on normalised earnings, i.e. normalised profit after tax,
minority interests and preference dividends.
In effect, the normalisation adjustments exclude
items which would have been labelled extraordinary before the
introduction of FRS3. Therefore in Company REFS the normalised
return calculated for post-FRS3 results is considered comparable
with the unmodified return from pre-FRS3 results.
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