I know this might sound silly. Pls bear with me.
How does interest expense be shown as non-operating on the I/S.
However, in the CFO it is shown as an interest expense.
I seem to be getting confused over this.
could anyone explain this? Perhaps with some example?
It’s one of the stupidities of US GAAP.
You just have to memorize it and move on.
Thanks S2000 magician. These little details seem too confusing now.
For some reason, it seemed easier in level 1.
I am guessing it is because of the depth of the topics covered and the readings dont seem related to each other.
I agree: it can be overwhelming at times.
On IFRS int.expenses may be categorized as CFO also as CFF. The last sounds more reasonable and the first solution is maybe IASB’s convergence to FASB.