If this is Increasing -> Your periodic expenses COGS, SGA are going down.
So your company is shown as being increasing profitable.
At the same time you show increased levels of special items (expenses) on the footnotes to your balance sheet. When this happens - you can be sure that the company is showing up items like depreciation or genuine periodic expenses along with "one time" restructuring charges. Restructuring charges were "one time" special items.
Depreciation/Genuine periodic expenses - were true expenses - which would have reduced core operating margin - and thus shown the company up in bad light.
CP作者: ninja1024 时间: 2011-7-11 19:45
CP - you better pass or I will personally kick your ass.作者: mengxu 时间: 2011-7-11 19:45
I hope so too.... (given you are hope backwards)...
CP作者: stalkey 时间: 2011-7-11 19:45
Nope. CFAI EOC Reading 25 Question #21. page 310
it refers to increasing core margin作者: iteracom 时间: 2011-7-11 19:45
gazhoo - you have written "falling core operating margin" - it should be increasing core operating margins + spike (increase) in negative special items.
not "fall in core operating margin" + Increase in negative special items. This is what I meant when I said you have it backwards.
