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What is the difference between interest expense and interest payable? And which figure should we use if we are asked to calculate Profit before tax and interest?
Generally, interest expense and interest payable are used to mean the same thing.
It is the total interest charged for the year (whatever has been paid, together with whatever is still owing) and it is this that appears in the Statement of profit or loss.
(Whatever is still owing at the end of the year also appears as a current liability in the Statement of financial position.)
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