Hi sir
Hope you're doing well
I've a query with regards to the past paper question 'Weston' that you've made a video on.
Why hasn't the interest income of 8% on $20m been deducted from cashflow statement in cashflow from operating activities?
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Weston
Hi,
All good thanks.
Where do those numbers come from? I will only have adjusted for the numbers in the statement of profit or loss.
Thanks
Yeah but won't we take the 8% to interest income in the p&l?
Dr financial asset
Cr interest income
Yes, but has it already been included in the accounts?
There's no specific heading 'interest income' in the statement of p&l but I feel it's under other income?
It specifically says the interest has been correctly recorded in the consolidated financial statements, so there is no reason to adjust it or guess where it may be.
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