CFAI EOC Integrating Financial Statements q 15 understand, financing, remember

HuskyGrad2010

Please Help


I understand in this question that the reason they have not added back interest expense to the net income. However they said that Bickchip reports under IFRS.



First q

Where in the question does it state that Bickchip reports under IFRS.


Second q

R they saying that once u report under IFRS then interest is classified as a financing activity and hence it is not added back to CFO. This might have been in L1 some where but I did that in 2k8 and really cannot remember. Please verify/clarify