Treatment of Interest and dividends in CFS - Ind AS - Indian Accounting Standards - Companies Law

Treatment of Interest and dividends in CFS Cash flows from interest and dividends received and paid shall each be disclosed separately. In case of Financial Institution - Cash flows arising from interest paid and interest and dividends received in the case of a financial institution should be classified as cash flows arising from operating activities. In the case of other entities - cash flows arising from interest paid should be classified as cash flows from financing activities while interest and dividends received should be classified as cash flows from investing activities. Dividends paid should be classified as cash flows from financing activities. The total amount of interest paid during a period is disclosed in the statement of cash flows whether it has been recognised as an expense in profit or loss or capitalised in accordance with Ind AS 23, Borrowing Costs. Particulars Classification for reporting cash flows Banks Financial Institution Other Entities Interest received on loans Operating Investing Interest paid on deposits and other borrowings Operating Financing Interest dividend received on investments in subsidiaries, associates and in other entities. Investing Investing Dividend paid on preference and equity shares, including tax on dividend paid on preference equity shares by other entities. Financing Financing Finance charges paid by lessee under finance lease Financing Financing Payment towards reduction of outstanding finance lease liability. Financing Financing Interest paid to vendors for acquiring fixed assets under deferred payment basis Financing Financing Principal sum payment under deferred payment basis for acquisition of fixed assets Investing Investing Penal interest received from customers for late payments Operating Operating Penal Interest paid to supplier for late payment Operating Operating Interest paid on delayed tax payments Operating Operating Interest received on tax refunds Operating Operating