CERTYNEX IFRS ACADEMY

Ulmont acquired a press for 650,000, of which 200,000 is still owed to the supplier at year-end, and presents an investing outflow of 650,000. What is the error?

The 200,000 still owed to the supplier should have been presented as a financing flow of the period.

The press should have been presented as operating, as it serves production.

Only the 450,000 paid is a cash flow of the period; the amount owed has not yet been paid.

There is no error, the asset being recognised at 650,000.