Hi, I was looking through the annual report of silverlake axis for 2017 and noticed that they have a bump up in earning due to (1) gain in disposal of PPE and also (2) shares in an associate. There is another item called (3) “gain on re-measurement of interest retained in investment to fair value”. Should we ignore those 3 to get a better gauge on the earnings for that yr? Thanks.
Yes you should remove number 1 and 3 to see how recurring is their profit. As for number 2 they are associated that they owned but not more than 50% hence they only record the profit. If you want to be conservative you can remove it but if the amount is small it is ok to ignore.
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