Finance costs-cash flows indirect method.

Rrafapak5y ago

Dear Chris Before you put them into operating activities finance costs were called finance costs. After you put them into operating activities finance costs changed their name to interest paid. Why does this happen ?

P2-D2Tutor5y ago#1

Hi, It is because the finance cost is what is expensed and this is not the same as what it paid in the year. We are likely to have opening and closing accruals to adjust the fiance cost to get the cash paid. Thanks

Rrafapak5y ago#2

thanks for explaining this to me

P2-D2Tutor5y ago#3

No worries, you are welcome!

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