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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Factoring & Gov Grant
1. May I knw factoring is considered under debt or equity financing???? or working capital financing
2. How about government grants? Does this considered as debt financing?
Thanks
1. Factoring is a way of financing working capital
2. Although government grants are a source of finance, they are not debt finance because the grant is not owing back to the government.
so the government grants will be fall in which category of financing??? how about equity financing?
There is no category. It is a source of finance, but will not appear in the financial statements – it simply serves to reduce the cost of the asset.