Question About Classification of Short Term Notes Payable

CFA Level I
#1

I was hoping someone would be able to clarify this for me. I know that notes payable should be classified under CFF but if it is classified under short term notes payable, does it get classified as CFO?

#2

no do not think so. any note payable would go to CFF only.

#3

No. Interest payments go in CFO, principal always in CFF.

#4

^ under US-GAAP only. With IAS-GAAP Interest Paid should be classified as CFO or CFF - Dinesh S

#5

And that’s actually an important point because one of the questions on the sample CFAI exam was exactly that. How is interest paid classified for both US and IAS GAAP.

#6

there’s a thread started by Maratikus on US vs. IAS GAAP … where this same has been posted for reference.