subleases income in cashflow

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Hemantsingh1466
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subleases income in cashflow

Post by Hemantsingh1466 »

Hi All,

Where to report subleases income in cashflow statment? Where and in which standard it is written??
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Marek Muc
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Re: subleases income in cashflow

Post by Marek Muc »

sounds like operating activities,

IAS 7

https://ifrscommunity.com/knowledge-bas ... cash-flows
Hemantsingh1466
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Re: subleases income in cashflow

Post by Hemantsingh1466 »

The query is for banking company.
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Marek Muc
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Re: subleases income in cashflow

Post by Marek Muc »

so in which category would you classify these cash flows and why?
Hemantsingh1466
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Re: subleases income in cashflow

Post by Hemantsingh1466 »

Depending on the lease classification, if it is an operating lease then in operating activities and if it is a financing lease then in investing activities.
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Marek Muc
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Re: subleases income in cashflow

Post by Marek Muc »

why income from finance lease as investing activities?
Hemantsingh1466
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Re: subleases income in cashflow

Post by Hemantsingh1466 »

Because it is a disposal of long term asset (ROU)
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Marek Muc
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Re: subleases income in cashflow

Post by Marek Muc »

ok I see your point, so cash flow from repayment of finance lease receivable will be an investing cash flow indeed,

and for the interest part, this applies:
https://ifrscommunity.com/knowledge-bas ... -dividends
Hemantsingh1466
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Re: subleases income in cashflow

Post by Hemantsingh1466 »

So is this "Depending on the lease classification, if it is an operating lease then in operating activities and if it is a financing lease then in investing activities." the right approach??
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Marek Muc
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Re: subleases income in cashflow

Post by Marek Muc »

yes!
unless financing is core business in which finance leases may be still within operating activities (similarly to loans given)
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