Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Q3 in Jun 2011 : Cash Flows statement (need help)
- This topic has 5 replies, 4 voices, and was last updated 12 years ago by richieinspain.
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- November 15, 2011 at 8:50 am #50503
Hi,
Anyone can help to to settle this problem?
Why there is no 5% loan note treated in the cash flows statement?
It seems like no any changes of that loan in b/f yr and c/f year.November 15, 2011 at 8:53 am #89833Is it because of no changes in b/f and c/f yr thus no nid to write in my SOCF??coz b/f 2000 – c/f 2000=0??
November 16, 2011 at 6:05 am #89834The reason that we dont include loan notes within cash flow statement is that, Loan notes are equivalent to cash. As such they would not form part of cash flow statement.
Hope it helps.Regards
RajNovember 17, 2011 at 2:36 am #89835Dear Raj,
Thank you very much for your explaination.
But I think Loan note is needed to include in the SOCF coz there is another 8% loan note is include in the SOCF in this question.November 23, 2011 at 2:17 pm #89836AnonymousInactive- Topics: 0
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The reason why that 5% loan note was not included in the cashflow statement is beacause there was no movement from prior year therefore no cash movements .Loans form part of the cashflow statement see *8% loan note treatment but if there is no movement we nond include it in the current CFS
November 23, 2011 at 5:00 pm #89837because there was no cash movement. Loan notes have remained static. Loan notes are not cash equivalents
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