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Finance costs-cash flows indirect method.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Finance costs-cash flows indirect method.

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by P2-D2.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 11, 2021 at 5:42 pm #620332
    rafapak
    Member
    • Topics: 27
    • Replies: 30
    • ☆☆

    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 ?

    May 12, 2021 at 7:08 pm #620437
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    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

    May 16, 2021 at 9:21 am #620713
    rafapak
    Member
    • Topics: 27
    • Replies: 30
    • ☆☆

    thanks for explaining this to me

    May 17, 2021 at 7:57 pm #620876
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    No worries, you are welcome!

  • Author
    Posts
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