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Hello Sir,
What is hedge margin,l have seen it being used as an adjustment to calculate net cash from operating activities.
It is written as Hedge margin receivables and payablesThank you
2.sir why is net change in finance receivables shown under cash flow from investing activities
Thank you
1. I have never seen hedge margin in an ACC a question. Can you give me the question and I will have a look.
2. There is a lot of flexibility in terms of which item goes under which heading. In the exam I would show the change in receivables under operating activities. But I can see your logic for showing the adjustment in investing activities.1.This is outside the exam question.It is based on a company l am looking at in the US and l know we are not supposed to be focusing on US companies but l just want to know
2.Sir l wanted to know the logic.Please explain thank you1. This facility is only to help students pass the SBR exam.
2. I suppose that investing in lease assets and letting them out is a form of investment. Perhaps that would be a reason for showing the adjustment in investing activities. I know that the lessee would show lease payments on the financing activities, so perhaps it makes sense
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