Suppose a company pays interest of $10,000 for the year on borrowed amounts due in two years.Under IFRS,what is the most the company can report as cash outflows from financing activities?

Question

Quizplus · Accepted Answer

Under IFRS, interest expense is recognized in profit or loss as it accrues, regardless of when the cash is paid. Therefore, the company can report $10,000 as cash outflows from financing activities.

Suppose a Company Pays Interest of $10,000 for the Year