CERTYNEX IFRS ACADEMY

Fenmira, which classifies interest paid as operating (case data), presents in financing a line “repayment of borrowings 250,000”, of which 40,000 is interest. What is the error?

The line should have been presented as investing.

There is no error: interest always follows the capital.

The 40,000 of interest goes to operating under the entity's policy; 210,000 to financing.

Interest should have been excluded from the statement, being merely a finance expense recognised in profit or loss.