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Explain Underlying Profit And What It Signifies About A Business

Question

“However, we also believe that an underlying profit measurement can assist readers to understand what is happening in a business such as Auckland Airport”. The directors, Auckland Airport Ltd.

Required: Explain the meaning of “underlying profit measurement” and critique the process.

Summary

Underlying profit is a performance measure used to determine the profit using approved financial reporting standards and it is the profit that a company is capable of earning. Sometimes, it is also referred as "normalized profit" instead of "underlying profit".

Total Word Count 595

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