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Hello,
In relation to Question 4 (B) of the Sept_Dec 2016 ACCA P2 paper, i am little confused by the disclosure note as per the Exposure Draft on IAS 7 .
For example, why is the “55” relating “Long Term Borrowings” , which is a loan drawdown , described as a “Non Cash Change”…surely this is a cashinflow and should be disclosed under “Cash Flow”..??
Any advice would be greatly appreciated
Thanks
LiamHi,
It is a bit of a strange one and I doubt that many students would actually have attempted this question in the exam. It is very rare that an Exposure Draft would be examined in this amount of detail.
I believe that the formatting of the answer has caused you confusion. The non-cash changes should be above the acquisition and new leases columns, and then the cash flow should be in place of the non-cash changes heading.
Hope that makes sense.
Thanks
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