CERTYNEX IFRS ACADEMY

Orlisse sells a machine for 70,000 (gain of 25,000) and presents 70,000 in its operating cash flows, on the ground that the gain is in its operating profit. What is the error?

Only the 25,000 gain should have been presented as operating.

It should have presented 45,000 as investing and 25,000 as operating, to follow the gain's share of the price.

There is no error; the gain justifies the classification.

The 70,000 disposal flow is investing, wherever the gain appears in profit or loss.