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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Group Statement of cash flows
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.
With Associates, we show dividend INSTEAD of profit.
So:
1. Add back profit
2. Deduct dividend
Why div receive from an associate is deduct div not added?
Because it makes cash go OUT of business.
Should we receive div from associate which is Cash Go In to the business?
Yes the dividend itself is an INFLOW of cash in the investing part of the cash flow statement