UK Net profit vs net assets - help

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Hi this may sound dumb but my boss has asked me to do a task and my mind has gone completely blank and I'm not sure how to do it. Any help would be greatly appreciated as he's away so I can't ask him, I have only been in this job for 2 months so still getting used to it.

I have prepared some consolidated accounts for June of which I have been asked to find out what the difference in variance is between net profit actual to budget and net asset actual to budget. For example:

£'000

Net profit June: 114
Net profit budget June: 190
Variance: (75)

Net asset June: (71)
Net asset budget June: 944
Variance: (1,015)

So he want to know what the difference of £940 is between the two variances i.e (1,015) & (75).

Can anyone shed any light on this?
 

kirby

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Usually, mgmt. will ask acctg to explain the difference between the BUDGET amount for net profit vs the ACTUAL amount for net profit and the BUDGET amount for net assets vs the ACTUAL amount for net assets.
 

bklynboy

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You don't net these 2 differences. What I think he means is what is driving the variance for each as Kirby suggests.
 

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