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Cashflow question

Forums › ACCA Forums › General ACCA Forums › Cashflow question

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarKim Smith.
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  • February 25, 2019 at 5:03 pm #506496
    Avatarjerma
    Member
    • Topics: 25
    • Replies: 187
    • ☆☆☆

    I need assistance with a question. When preparing a cashflow what figure is used under Cashflows from financing for repayment of borrowings? Do you use the full amount paid toward the loan for the year or only the principle payment? Kindly assist.

    March 1, 2019 at 5:15 pm #507027
    AvatarKim Smith
    Keymaster
    • Topics: 138
    • Replies: 8463
    • ☆☆☆☆☆

    See the proforma statement in FA Chapter 14 – Interest expense and interest paid are dealt with under operating activities – so it is only the principal that is included under financing activities.

    Please remember to select the relevant exam when making a post to the forum.

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