CERTYNEX IFRS ACADEMY

For four years Delquine has used a bank facility that is permanently overdrawn, around 900,000, to finance its inventories; the bank has attached an annual reduction schedule to it (case data). How should it be presented?

As a deduction from cash, every overdraft being a component of cash.

As operating activities, since it finances inventories.

As a borrowing, its drawdowns and repayments being financing cash flows.

Off the statement of financial position, as a commitment given.