Advance for purchase of fixed assets IFRS


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Hi

Say we made an advance payment to purchase a fixed asset, where should it appear in an IFRS statement of cash flows?
Operating, or investing?

Thanks in advance. ..:)
 
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Ideally, a prepayment would get reconciled when calculating the cash generated from operations from PBT/PAT/Net Profit, depending on where you start the reconciliation from.

As the items of Property, Plant and Equipment need to be shown under the Investing Activities, you could always add back the net flow at the end of the reconciliation and show it on the face of the cash flow statement under the appropriate heading.
 
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hi
this is a prepaid and should be included in current assets so i, my self classify in operating activities of cash flow.
 
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recently i got a point , i checked a balance sheet that has been closured amount of expenditure prepaid in current assets it is cause to have negative cash flow from operating activities so i got refused i think in this case proper categories is to record in fix assets in order to have sound cash flow
 
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That expenses is a capital expenses either the amount paid instalmentaly for the Fixed asset is small or not. It is an item under 'investing' activities and should be recorded there. Attempt to to record it as an operating activity will not affect the final balance -The cash and cash equivalent b/f- but it will understated the value of the cash flow from 'operating activities. If you are thinking maybe it should appear as a receipt in investing activities and as an expenses in operating activities it is not practicable...
 

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