Apologies if this has been asked or the wrong place.
In the attached question why is the answer only interest expense.
When I read the explanation I get that in IFRS both interest expense and dividends paid can be classified as CFO or CFF but why is interest expense the correct answer and not dividends paid
TIA
It’s a somewhat silly question: interest expense is the only answer for which you can even make a choice.
It can’t be affected by the classification choice for impairment losses, because there’s no choice to make.
It can’t be affected by the classification choice for dividends paid, because there’s no choice to make.
