Struck me to notice the CFAI answer… Why? because it looks like contradicting the tables on page 254 CFAI’s FSA book and Sch. book 3 P 107. Here is the Qu. "The regional bank of Australia recieves interst income on the loans it has outstanding. Durango Manuf. Inc. also recieves interest income on some surplus funds they currently have invested in corporate bonds. For each company, respectively, the intrest income they recieve would be classified as which type of business activity for financial reporting purposes? Answer is Regoinal Bank clasiffies it as operating and Durango as investing…Got no problem with the bank but I got a durango issue. Now on the explanation that follows it says durango is not in the business of lending or investing and the intrest they recieve would be correctly classified as an investing activity… The tables I mentioned at the start show under US GAAP all interest recieved should be classified as operating-choice come only under IFRS. hmmmmmmmmmmmm-thoughts guys and gals…Thanks
I think the question was asking for type of business activity, not cash flow classifications under GAAP or IFRS.
you r right welly. thanks for clearing the mud as well as my doubts. cheeeeeeeeeeers