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Weston

This topic has 5 replies, 2 voices, and was last updated 8 years ago by P2-D2.

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August 20, 2017 at 2:08 pm #402632
Chandan
Member
- Topics: 24
- Replies: 35
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?
August 20, 2017 at 5:46 pm #402689
P2-D2
Keymaster
- Topics: 4
- Replies: 7207
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
August 20, 2017 at 5:48 pm #402690
Chandan
Member
- Topics: 24
- Replies: 35
Yeah but won’t we take the 8% to interest income in the p&l?
Dr financial asset
Cr interest income
August 20, 2017 at 5:52 pm #402695
P2-D2
Keymaster
- Topics: 4
- Replies: 7207
Yes, but has it already been included in the accounts?
August 20, 2017 at 5:56 pm #402697
Chandan
Member
- Topics: 24
- Replies: 35
There’s no specific heading ‘interest income’ in the statement of p&l but I feel it’s under other income?
August 21, 2017 at 5:33 pm #402807
P2-D2
Keymaster
- Topics: 4
- Replies: 7207
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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