Operating vs non- operating exp

Whether interest paid on unsecured loans is operating or non-operating expense?
Replies (2)
Quick Summary
This discussion clarifies whether interest paid on unsecured loans is classified as an operating or non-operating expense. While often categorised as a finance cost, its placement can depend on the loan's purpose, such as funding working capital or investments. The classification also affects how interest is reported in cash flow statements, differentiating between operating, investing, and financing activities.

Everythin* is classified as a finance cost. It depends how you can classify it for yourself that is if the loan was to fund working capital or investments 

R u bcom or ca? I just now remembered it’s cash flows which segregates interest in different sections

operating cash flows- Interest expense from working capital, Interest payable on dividends (financial institutions)

investing activities- interest payable to joint venture or an associate will be recorded here

finance activity- Interest on dividends for other entities

i hope you got the gist of it. All the above interest expenses are reported as finance costs.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details