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FCFF

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Why Interest is added back? Interest is non operating exp and we are taking cash flow from operations as a base, to calculate FCFF.

Mansha Tutlani

CA Final

★ 555

03-May-24 12:28

Answers (2)

Best Answer

U r right CFO is purely OPS CF you not need not add it back i CAI made a mistake . May be they copied from somewhere

Sriram Somayajula

Admin

03-May-24 12:33

Yes sir. As per US GAAP interest is operating but under IFRS IAS 7/Ind AS 7 , this is financing expense.

us_gaap_ifrs_cash_flows.pdf

Thread Starter

Mansha Tutlani

CA Final

★ 555

03-May-24 13:23

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