- This topic has 5 replies, 2 voices, and was last updated 5 years ago by P2-D2.
- You must be logged in to reply to this topic.
Instant Poll - Read and post comments:
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
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?
All good thanks.
Where do those numbers come from? I will only have adjusted for the numbers in the statement of profit or loss.
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.