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In Annual Financial Accounts, is Finance Expense synonymous to Interest Payable?

I am trying to locate Interest in Income Statement of a corporation, I only see Finance expense, are they same and one thing? Are they Synonimous?

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4 Responses to “In Annual Financial Accounts, is Finance Expense synonymous to Interest Payable?”

  1. Frederick M said :

    Someone may have used the two interchangably, but they are not synonymous, and using them synonymously might get you into tax trouble. Interest Payable should be a sub account of Finance Expense.

  2. Matt B said :

    No interest payable should be highlighted separately , as should interest receivable, they are not allowed to be offset against each other.

    However Im not sure if you will find any interest payable under the income statement, you will need the trading profit & loss statement.

  3. olivia said :

    Finance payable is a sub-account of interest payable.

  4. Mechard T said :

    In accounting terms they are not synonymous although an interest is a subset of Finance expenses. Finance expense might also include the costs incurred in securing finance for a corporate.But if there is penalties imposed to the corporation because of probably delay of payments regarding liabilities /loans, accountants who are aware of taxation laws may opt to combine them as a technique to avoid tax. This emanates from the facts that not all expensees are tax allowable to a corporation. Fines and penalties is non allowable expenses so if they are reflected in the financial statements will be taxed. But to solve your problem, look at the notes, under Finance Expenses, you will find what forms part of the global ” Finance expense”.


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