CERTYNEX IFRS ACADEMY

Crédit du Lac SA has as its main business activity providing financing to customers, which it discloses in its financial statements (case facts: specified main business activity). In which category does it classify the interest received on loans granted to its customers?

In the investing category, because loans are assets that generate a return.

In the operating category, because financing customers is its main business activity.

In the financing category, because that interest relates to financing transactions.

In the income taxes category, because it is received from taxable institutions.