IAS 7 Investing activities – CIMA F1 Financial Reporting

Comments

1. Eugeneakorli says

   June 4, 2020 at 3:58 am

   why is the finance cost treated as an inflow on the cash statement please

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   • P2-D2 says

     June 4, 2020 at 10:37 am

     Hi,

     It isn’t treated as an inflow, we are just adding it back to the profit before tax figure to get back to the profit from operations figure.

     Thanks

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     • Eugeneakorli says

       June 4, 2020 at 10:42 pm

       Thank you so much!

2. peronapilar says

   November 6, 2016 at 1:40 pm

   In example 5… why the sale of PPE is (250)? and not 250? I don´t understand why the figure is negative, when is an inflow

   In example n 6…. the item was disposed for 120,000 but in the T account was mentioned 100,000…. this is the carrying value. Why?

   Thanks

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   • rshallabi says

     May 1, 2017 at 6:57 pm

     hello Pilar,
     If I understood correctly, the 100k on example 6 is the NBV of your machinery and that’s how much you should dispose, the 120k is the cash value of the sale, therefore it should affect your cash account and not the PPE account.

     I guess on example 5 the tutor was talking about the case of Purchasing another piece of equipment and how it should be shown.
     I hope that helps.
     Regards

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   • Eugeneakorli says

     June 1, 2020 at 4:20 am

     same issue with question 6

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