CERTYNEX IFRS ACADEMY

Isquine acquires a machine for 500,000: 150,000 paid in cash, the balance settled through a 3-year supplier credit, of which it repays 50,000 before year-end (case data). What investing outflow should be presented for the acquisition?

500,000, the total cost of the machine, since the whole asset enters property, plant and equipment this year.

150,000; classifying the 50,000 repaid later (investing or financing) is a matter of judgement.

200,000 as financing and 300,000 as investing, to reflect the supplier credit's share of the cost.

None, the acquisition being financed by a supplier credit rather than by the entity's own cash payment.