where are adjustment of dividend paid shown in cash flow statement??
n what would be its treatment when net profit for the year is directly given in the question??
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| Originally posted by :ρaraѕ | ||
| " | where are adjustment of dividend paid shown in cash flow statement?? n what would be its treatment when net profit for the year is directly given in the question?? |
" |
it is to be deducted from financing activities,before that add back proposed dividend to net profit.
firstly,Dividend paid will be add back to net profit and next will be deducted while calculating financing activities.
Dividend paid is added to net profit=(reason)To get net profit before all appropriations.
dividend paid is deducted from financing activity=(reason)Because dividend paid is cash outflow.
Deduct dividend paid from financing activities and add back proposed dividend to net profit in operating activities.
Deduct the dividend from financing activities.
If the net profit given is after deducting proposed dividend then to arrive, add back the proposed dividevd to net profit.
but if the net profit given is PBT (profit before tax) or profit after tax but before dividend, then no need to add dividend to net profit.
thnx evryone..
i got my answer
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