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Ask the Tutor ACCA SBR

Group Statement of cash flows

ZzorrizSupporter6y ago
Sir, I have a query related to SBR Dec 2018 Q1 part(ii)-MoyesGroup "The share of profit of associate is an item of income associated with investing activities and so has been deducted" Is it its not cash flows(share of profit) and we should only include the div received from an associate in the cash flows from investing activities? Thanks.
stephenwidbergstephenwidbergTutor6y ago#1
With Associates, we show dividend INSTEAD of profit. So: 1. Add back profit 2. Deduct dividend
ZzorrizSupporter6y ago#2
Why div receive from an associate is deduct div not added?
stephenwidbergstephenwidbergTutor6y ago#3
Because it makes cash go OUT of business.
ZzorrizSupporter6y ago#4
Should we receive div from associate which is Cash Go In to the business?
stephenwidbergstephenwidbergTutor6y ago#5
Yes the dividend itself is an INFLOW of cash in the investing part of the cash flow statement
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