Interest on defined benefit planForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Interest on defined benefit planThis topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts August 20, 2019 at 12:22 pm #528208 choopeaParticipantTopics: 5Replies: 4☆A company operates a defined benefit scheme. In statement of cash flows (operating activities), the calculation for interest paid is as below:Interest paid (Finance costs as shown in SPL – interest on defined benefit plan)My question is why the interest on defined benefit plan not included in the calculation of interest paid? Is it because it is a non-cash item?Thank you in advance. August 27, 2019 at 8:48 pm #539831 P2-D2KeymasterTopics: 4Replies: 7065☆☆☆☆☆Hi,Yes, the interest is accrued on the pension and it isn’t actually paid. It therefore needs to be deducted from the finance cost to get the interest paid figure.ThanksAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In