19) When is interest received considered as financing activities ?
Dear Student,
When interest is paid on Debentures issued , it is considered as Financing Activity.Interest received is never considered under Financing Activity ; it is either an operating Activity or Investing Activity. There may be the following situations:
When interest is paid on Debentures issued , it is considered as Financing Activity.Interest received is never considered under Financing Activity ; it is either an operating Activity or Investing Activity. There may be the following situations:
| Particulars | Activity |
| Interest received on Investment by a non-financing Company | Investing Activity |
| Interest received on Investment by a Financing Company | Operating Activity/Investing Activity |