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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Q jocatt share of Associate profits
in this qs why hasnt the share of ass profit been taken as inflow under investing activities?
Because a share of profits is NOT a cash flow? Any dividend from the associate would be a cash flow.
So we need to deduct from pbt the share of associate’s profit in operating activities as a non-cash item and then show the dividend (if there is one) as an inflow in investing activities
OK?
