Cash flow

sdgunjal

student

32 Points Posted on 10 November 2015

No. It comes in financing activities

Rahul Mishra

studying

34 Points Posted on 10 November 2015

dividend paid is part of financing activity not of operating activity

Gagan Deep Singh

CHARTERED ACCOUNTANT

1190 Points Posted on 10 November 2015

Dividend recieved on investment in shares comes under investing activity and dividend paid on issue of shares comes under financing activity.

shabab anwer

Student CA IPC / IPCC

25 Points Posted on 10 November 2015

As per AS 3 CASH FLOW STATEMENT.UNDER INDIRECT METHOD: (i) DIVIDEND INCOME- add in investing activity. (ii) DIVIDEND PAID- less in financing activity and if there was any dividend proposed during the year add it in operating activity in net profit as adjustment or altenatevly u can make profit and loss appropriation account. UNDER DIRECT METHOD (i) DIVIDEND INCOME- add in investing activity. (ii) DIVIDEND PAID- less in financing activity

sonamtseringsherpa

abc

33 Points Posted on 10 November 2015

Dividend recieved is an investment activity , whereas dividend paid is financing activity.

Anmol Agrawal

Student

12 Points Posted on 10 November 2015

For a financing company dividend will come under operating activites

Deepak

to be a chartered accountant

141 Points Posted on 11 November 2015

No if we go with net profit we have to add back dividend provision in oprerating activities and thend deduct in financing activities

taha123

ca

75 Points Posted on 11 November 2015

if provision is not made will it then come under operating??

Guest

It is cash flow buddy...provision is irrelevant...see the actual cash flow

shabab anwer

Student CA IPC / IPCC

25 Points Posted on 11 November 2015

Under indirect method we have to calculate operating profit before working capital changes so we adjust operting incomes nd expenditure in net profit to obtain such profit.. So if there is any provision then we have to add it back.

Arvind

Student

30 Points Posted on 11 November 2015

Dividend received comes under investing activities while payment thereof comes under financing activities.

Nitin Gupta

CA Final Student

66 Points Posted on 11 November 2015

Which type of Interest Income or Expense will be deducted or added?? For eg: Interest on FDR,Bank OD/CC etc....

Ruchi

CA

1410 Points Posted on 11 November 2015

For a financing company, dividend received comes under operating activity while for others it comes under investing activities.

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taha123

sdgunjal

Rahul Mishra

Gagan Deep Singh

shabab anwer

sonamtseringsherpa

Anmol Agrawal

Deepak

taha123

shabab anwer

Arvind

Nitin Gupta

Ruchi

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