• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Finance lease at the cash flow statement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Finance lease at the cash flow statement

  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by P2-D2.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 25, 2016 at 5:33 pm #351487
    coop
    Participant
    • Topics: 29
    • Replies: 45
    • ☆☆

    Hello Sir,

    At the cash flow statement, the increase at the finance lease obligation from the balance

    b/f to c/f represents a cash inflow – that is ok, whereas, the new finance lease (which

    supposed to be an increase) represents cash outflows !!

    for example:

    Non-current liabilities 31 March 2013 31 March 2012
    8% loan notes 1,400 3,125
    Deferred tax 1,500 800
    Finance lease obligation 1,200 4,100 900 4,825
    –––––– ––––––
    Current liabilities
    Finance lease obligation 750 600

    Monty acquired additional plant under a finance lease that had a fair value of $1·5 million
    this date it also revalued its property upwards by $2 million and transferred $650,000 of the resulting revaluation reserve this created to deferred tax. There were no disposals of non-current assets during the period.
    Prepare a statement of cash flows for Monty for the year ended 31 March 2013

    At the answer, the new finance lease of $1·5 million, considered as cash outflow (1,500) as followings :.
    Balances b/f – current (600)
    – non-current (900)
    New finance lease (1,500)
    Balances c/f – current 750
    – non-current 1,200
    ––––––
    Balance cash repayment (1,050)
    ––––––

    my question is : why the New finance lease of (1,500) treated differently as cash outflow, whereas, the increased finance lease of (1200-900) and (750-600) treated as cash inflow?

    Thanks

    November 26, 2016 at 11:13 am #351607
    coop
    Participant
    • Topics: 29
    • Replies: 45
    • ☆☆

    I am sorry, please ignore the question

    Thanks

    November 27, 2016 at 9:58 pm #352011
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7228
    • ☆☆☆☆☆

    OK. Hope you’ve managed to understand it all.

    Thanks

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on Financial management objectives – ACCA Financial Management (FM)
  • John Moffat on The cost of capital – Cost of debt – ACCA Financial Management (FM)
  • John Moffat on Process Costing (part 1) – Normal or Expected Losses – ACCA Management Accounting (MA)
  • John Moffat on Group Accounts The Consolidated Statement of Financial Position (1b) – ACCA (FA) lectures
  • prathikr on Financial management objectives – ACCA Financial Management (FM)

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in