CAT / FIA FFA Syllabus D. Recording Transactions And Events - Finance costs - Notes ^{13 / 14}

The interest expense incurred on loan stock and bonds will be shown as an expense called ‘finance costs' in the statement of profit or loss. We have also seen that dividends paid on redeemable preference shares are also included as finance costs.

Accounting treatment

Dr Finance Costs (I/S)
Cr Bank