CERTYNEX IFRS ACADEMY

Norzane's main account, repayable on demand, was in credit for eight months of the year and overdrawn for four months; it is overdrawn by 40,000 at the reporting date. How should it be presented?

As a deduction from cash and cash equivalents, as an overdraft integral to cash management.

As a borrowing, its appearance at year-end being a financing cash flow.

As a trade payable, within the change in working capital.

It is ignored in the reconciliation because it is below materiality.