Under IFRS, companies have a choice on the classification of interest received. Which of the following outlines the choice?
A) Interest received must be included in operating activities.
B) Interest received must be included in either operating or financing activities.
C) Interest received must be included in either operating or investing activities.
D) Interest received must be included in investing activities.

Question

Quizplus · Accepted Answer

Under IFRS, companies have the flexibility to classify interest received as either operating or investing activities in the cash flow statement. This choice allows companies to align the presentation with the nature of the interest income in relation to their business operations.

Under IFRS, Companies Have a Choice on the Classification of Interest