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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IAS 7 Investment Income in the SOCF
Hi, why is investment income a negative balance in the operating activities section in the statement of cash flows?
Hi,
It is adjusting the profit before tax figure to work backwards to get the profit from operations. The income is added to profit from operations to get to profit before tax, so if we are given the PBT figure then we will need to deduct it to get back to the profit from operations.
Thanks
