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- Money flows arising from interest paid ought to be categorised as financing activity whereas curiosity and dividends obtained ought to be categorized as money flows from investing activities.
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Modifications in ownership pursuits in subsidiaries and other businesses 39 The aggregate money flows arising from acquiring or dropping control of subsidiaries or different companies shall be offered separately and classified as investing actions. Nonetheless, it is extra appropriate that curiosity paid and curiosity and dividends obtained are categorised as financing money flows and investing cash flows respectively, as a end result of they’re prices of obtaining financial sources or returns on investments. Some argue that curiosity paid and curiosity and dividends acquired may be categorized as working money flows because they enter into the dedication of profit or loss. Nevertheless, there is no consensus on the classification of these money flows for different entities.
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36 Taxes on earnings arise on transactions that give rise to cash flows which are categorized as working, investing or financing actions in an announcement of money flows. Taxes on earnings 35 Money flows arising from taxes on earnings shall be individually disclosed and shall be categorized as money flows from working activities except they are often particularly identified with financing and investing actions. 32 The whole quantity of interest paid during a period is disclosed in the statement of money flows whether it has been recognised as an expense in revenue or loss or capitalised in accordance with Ind AS 23, Borrowing Prices.
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Components Of A Money Move Statement:-
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