Definition of Net Profit Before Tax

Definition in terms of the B-BBEE Codes of Good Practice of 11th October 2013 (BEE Codes 2013)

Net Profit Before Tax

Means the operating profit of a measured entity before tax.

It incorporates both the equity / loss figures and abnormal items, but excludes extraordinary items as determined by (GAAP) Generally Accepted Accounting Practices;

BizAdvance Consulting comments and references:

It is not clear why this definition has been included. In the 2007 Codes Net Profit after Tax was used in order to calculate the VAE status of a measured entity. VAE has been superseded by Empowering Supplier in the BEE Codes 2013.

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