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P2-D2.
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Chandan
- Topics: 24
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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?
P2-D2
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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
Chandan
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Yeah but won’t we take the 8% to interest income in the p&l?
Dr financial asset
Cr interest incomeP2-D2
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Yes, but has it already been included in the accounts?
Chandan
- Topics: 24
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There’s no specific heading ‘interest income’ in the statement of p&l but I feel it’s under other income?
P2-D2
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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.
Chandan
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