Under IFRS cash receipt of interest cannot be classified as a (n):?

As per IAS7, interest received has to be classified under operating or investing activities. ...so the answer is financing activities. .

Yes, Option B is the right answer.

Under Financing activity ....

 

B. financing activity. Explained in IAS-7-33. In brief, received interest and dividends can be classified as either operating or investing activities, as long as this classification is consistent.

Ans:- Option B,  Interest received in Cash is a source of   Other Income in P&L and shown either as a deduction of  total  Finance Charges or as a separate item and as such it would be grouped under the Operating Activity.  Hence it could not be grouped under  Financing Activity, but under Investing Activity if the interest is also reinvested.

Correct Answer is B. Financing Activity under IFRS cash receipt of interest cannot be classified.

Right Ans is.

 

B. Financing activity.

B-------------------------------------------------------------

Option (A) investing activity................

Option B) financing activity

option B=====================