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IAS 7 Investment Income in the SOCF

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IAS 7 Investment Income in the SOCF

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
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  • May 10, 2022 at 6:37 pm #655352
    Aria9595
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    Hi, why is investment income a negative balance in the operating activities section in the statement of cash flows?

    May 16, 2022 at 8:13 pm #655840
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7207
    • ☆☆☆☆☆

    Hi,

    It is adjusting the profit before tax figure to work backwards to get the profit from operations. The income is added to profit from operations to get to profit before tax, so if we are given the PBT figure then we will need to deduct it to get back to the profit from operations.

    Thanks

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