• From: Bangladesh, Dhaka
  • Registered: 11/26/2009
  • Posts: 25

Topic: Miscellaneous issues in financial reporting

Dear Sir

Can you explain me why "Calculated returned" labeled in Balance Sheet? It would be helpful for me if you clear me.

Thank you in adv.

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Miscellaneous issues in financial reporting

The 'Calculated return' in Balance sheet is the same as the Net Profit for the Period. When the year is closed it will be converted to Retained Earnings. So it is a kind of Equity, although not yet booked. This is the reason for calling it Calculated Return.
The calculated return is also the difference between assets and liabilities.

/Joe