IFRS for Dummies question

Barry
Barry Registered Posts: 101 Dedicated contributor 🦉
edited 11:35AM in AAT member discussion
I bought IFRS for Dummies by Steve Collings recently and not sure on something in the cash flow statement chapter.
The book says that you add a loss on disposal of an asset to profit but surely you deduct it as it is an expense?
I may be wrong as I've been revising a lot but I'm not sure i agree you add it on?
Help please :(

Comments

  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
    You add it back in the statement of cash flows because it is a non-cash item and has been included in arriving at operating profit. It is treated in the same way as you treat depreciation.

    Regards
    Steve

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