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Ask the Tutor ACCA FR
Interest on bank overdraft
Hi,
It is because it is interest expense and will be deducted after PBIT as a finance cost.
Thanks
I'd have probably done what you have done and added back the interest on the bank overdraft. They seem to be saying that the bank overdraft is not borrowings and arises from the day-to-day operations but I tend to disagree.
Thanks
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