CERTYNEX IFRS ACADEMY

The Rozmont group lent 1.2 million to its equity-accounted joint venture; its consolidated statement does not mention it, “intragroup transactions being eliminated”. What is the error?

The loan should appear in financing.

The loan to an equity-accounted joint venture is a cash flow to present.

There is no error.

Only interest on the loan should appear, the principal being eliminated as an intragroup transaction.