Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Deltoid cash flow
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MikeLittle.
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- May 31, 2017 at 9:04 am #389156
——————————————————-31 March 2017 and 2016
Non current Liability
10%loan note———————————————-nil————–5000
Current liability
10%loan note———————————————-5000———-nil
b/f-5000
payment of loan note-5000
c/f-5000Note.
The 10% loan note is due for repayment on 30 june 2017.Deltoid is in negatiations with the loan provider to refinance the same amount for another 5 years.I just wrote down this amount as repayment of loan note under cash flow from financing activities but in the answer it has not been showed?It is not concise note from my point of view.
In the note it says to refinance the same amount for five years and negotiation with the loan provider meaning negotiation continues it means it has not been decided so it would be absurd to put it as proceed from loan note under financing activities.Also continuation of negotiation means that amount repaid and will probable be able to be refinanced.Such a confusing case.Could you explain it?why 5000 not written down under financing activity as repayment of loan note?
May 31, 2017 at 9:16 am #389172“Could you explain it?why 5000 not written down under financing activity as repayment of loan note?”
It hasn’t been paid!
This is a statement of cash flows
It is not a statement of something that may or may not happen in the future!
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