CERTYNEX IFRS ACADEMY

Calnis, a manufacturer, wants its operating cash flow to reflect the cost of its debt, and chooses for the first time a policy for classifying interest paid (case data). Which choice is compliant?

Classify interest paid as investing, with the cost of the machines they financed.

Allocate interest each year as needed.

Classify interest paid as operating, then stick to it from period to period.

Exclude interest from the statement.