Cash flow

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ca
75 Points Joined August 2014
does dividend comes in operating activity
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On 10 November 2015 at 16:29 Report
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student
32 Points Joined October 2013
No. It comes in financing activities
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On 10 November 2015 at 17:24
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studying
34 Points Joined September 2012

dividend paid is part of financing activity not of operating activity

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On 10 November 2015 at 17:25
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CHARTERED ACCOUNTANT
1190 Points Joined October 2012
Dividend recieved on investment in shares comes under investing activity and dividend paid on issue of shares comes under financing activity.
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On 10 November 2015 at 17:44
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Student CA IPC / IPCC
25 Points Joined August 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
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On 10 November 2015 at 18:35
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abc
33 Points Joined March 2015
Dividend recieved is an investment activity , whereas dividend paid is financing activity.
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On 10 November 2015 at 19:00
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Student
12 Points Joined November 2015
For a financing company dividend will come under operating activites
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On 10 November 2015 at 19:39
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to be a chartered accountant
141 Points Joined August 2012
No if we go with net profit we have to add back dividend provision in oprerating activities and thend deduct in financing activities
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On 11 November 2015 at 08:57
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ca
75 Points Joined August 2014
if provision is not made will it then come under operating??
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On 11 November 2015 at 10:25
Guest
It is cash flow buddy...provision is irrelevant...see the actual cash flow
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On 11 November 2015 at 11:23
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Student CA IPC / IPCC
25 Points Joined August 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.
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On 11 November 2015 at 11:49
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Student
30 Points Joined November 2012
Dividend received comes under investing activities while payment thereof comes under financing activities.
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On 11 November 2015 at 12:38
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CA Final Student
66 Points Joined July 2012
Which type of Interest Income or Expense will be deducted or added?? For eg: Interest on FDR,Bank OD/CC etc....
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On 11 November 2015 at 13:34
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CA
1410 Points Joined March 2015

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

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On 11 November 2015 at 21:53


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