20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Cashflow

This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.

Viewing 4 posts - 1 through 4 (of 4 total)

Author
Posts
October 15, 2021 at 6:32 am #637717
James124
Participant
- Topics: 166
- Replies: 138
In cashflows, we subtract interest paid in Cash from operating activities. Shouldn’t it be subtracted in cash from financing activities?
October 15, 2021 at 8:22 am #637739
John Moffat
Keymaster
- Topics: 57
- Replies: 54696
No, it should be as in the pro forma taken from IAS7 that is printed in our free lecture notes.
October 15, 2021 at 10:46 am #637746
James124
Participant
- Topics: 166
- Replies: 138
Yes tutor. Can you please help me out why that so? Is there any reason or it is only as per standard?
October 15, 2021 at 4:01 pm #637762
John Moffat
Keymaster
- Topics: 57
- Replies: 54696
It is an expense like any other expense. However because it is different than other running expenses, it is required to be shown separately as a deduction.
Author
Posts

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.