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Why don’t we receive interest when there’s a strike?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Why don’t we receive interest when there’s a strike?

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • July 1, 2021 at 12:44 pm #626792
    muhammadakbarmy
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    In the Ecuador illustration page 28 of opentuition FR notes, why is investment income received only calculated for 3 months and not 4?
    when we are borrowing we pay interest for all months regardless of a strike, we just expense it in our records. so when we’re investing why dont we calculate for all the months?

    July 5, 2021 at 8:17 pm #627040
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    We will still receive the interest for the full four month period but it is only for three months where we are able to net it off against the interest paid that is capitalised. The one month where it is not net off it will be recorded as interest income.

    Thanks

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