CERTYNEX IFRS ACADEMY

Galion pays each year the rent for a warehouse recognised in the statement of financial position. In its statement of cash flows, how does it classify the part of the payment that repays the principal portion of the lease liability?

Within operating activities, since the warehouse is used in operations.

Within financing activities.

Within investing activities, since the right-of-use asset is a non-current asset.

It does not appear in the statement, since the right-of-use asset was not acquired for cash.