IAS 7Chapter 6Lesson 2
Interest and dividends: present, classify, stay consistent
Step 1 of 9Learning objectives
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Interest and dividends received and paid are each presented separately and classified consistently. For an entity other than a financial institution, the wording before IFRS 18 leaves a choice: interest paid as operating or financing, interest and dividends received as operating or investing, dividends paid as financing or operating. The total amount of interest paid, including interest capitalised in the cost of an asset, is disclosed.
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Learning objectives
- Identify the classification options for interest and dividends and the consistency requirement.
- Calculate interest paid (including capitalised) and dividends paid from balances.
- Justify a classification policy and link entries to the cash flows presented.