Capital Lease:- Interest expense (non-operating)

[300hoursoverand]

I know this might sound silly. Pls bear with me.
How does interest expense be shown as non-operating on the I/S.
However, in the CFO it is shown as an interest expense.
I seem to be getting confused over this.
could anyone explain this? Perhaps with some example?

 

[S2000magician]

It’s one of the stupidities of US GAAP.
You just have to memorize it and move on.

 

[300hoursoverand]

Thanks S2000 magician. These little details seem too confusing now.
For some reason, it seemed easier in level 1.
I am guessing it is because of the depth of the topics covered and the readings dont seem related to each other.

 

[S2000magician]

You’re welcome.
I agree: it can be overwhelming at times.

 

[Flashback]

On IFRS int.expenses may be categorized as CFO also as CFF. The last sounds more reasonable and the first solution is maybe IASB’s convergence to FASB.