Treatment of dividend received in cash flow statement

HomeAbout UsFinancial Reporting Act 1997FRFFRF ProfilesAnnual Report201920202021SecretariatMASBChairman's StatementsCommittees/Working Groups (WG)Interpretations Committee (IC)Stan

Treatment of dividend received in cash flow statement
  • Home
  • About Us
  • Financial Reporting Act 1997
  • FRF
  • FRF Profiles
  • Annual Report
  • 2019
  • 2020
  • 2021
  • Secretariat
  • MASB
  • Chairman's Statements
  • Committees/Working Groups (WG)
  • Interpretations Committee (IC)
  • Standing Committee on Islamic Financial Reporting
  • MFRS Application and Implementation Committee (MAIC)
  • Working Groups (WG)
  • External Consultative Bodies
  • IFRS Advisory Council
  • IASB Emerging Economies Group
  • IASB Islamic Finance Consultative Group
  • IASB SME Implementation Group
  • Asian-Oceanian Standard-Setters Group - Chair's Advisory Committee
  • Secretariat
  • Career
  • Standard-setting Due Process
  • Our Standards
  • MASB Approved Accounting Standards for Entities Other than Private Entities
  • MASB Approved Accounting Standards for Private Entities
  • Publication Order
  • Technical Pronouncements
  • Preface to MASB Approved Accounting Standards
  • Preface to Technical Pronouncements and Guidance
  • Framework
  • Practice Statements
  • Statement of Principles
  • Technical Releases
  • Issues Bulletin
  • MAIC Educational Materials
  • MFRS Application and Implementation Guide (MAIG)
  • MAIC Questions & Answers (Q&As)
  • Other Supplementary Material
  • Other Sources of Guidance
  • Archived Technical Pronouncements
  • Islamic Finance
  • Background
  • MASB Islamic Technical Unit and Standing Committee on Islamic Financial Reporting
  • MASB Islamic technical pronouncements
  • AOSSG Islamic Finance Working Group
  • FAQ
  • Contact Us
  • Work in Progress
  • Discussion Papers
  • Open for Comment
  • Discussion Papers Pending
  • 'Superseded' Discussion Papers
  • Exposure Drafts
  • Open for Comment
  • Exposure Drafts Pending
  • 'Superseded' Exposure Drafts
  • Tentative Agenda Decisions
  • Open for Comment
  • Tentative Agenda Decision Pending
  • 'Superseded' Tentative Agenda Decisions
  • Other Draft Pronouncements
  • MASB Submissions to IASB
  • IASB Exposure Drafts
  • IASB Discussion Paper
  • IASB Draft IFRIC Interpretations/IFRIC Tentative Agenda Decisions
  • IASB Request for Information and Other Draft Pronouncements
  • MASB Submissions to Others
  • Events
  • Outreach Activities
  • Special Events
  • Speech: Erkki Liikanen in Kuala Lumpur at first meeting as Trustee Chair
  • MASB, an intangible asset
  • Archived Outreach Activities
  • Meeting Calendar
  • International Participation
  • IFRS Foundation
  • IASB Consultative Groups
  • International Groups
  • Regional Groups
  • Papers Presented
  • Webcast
  • Media Room
  • Notice of Issuance / Amendments
  • Press Releases
  • Articles
  • General
  • Useful Links
  • Local
  • International
  • FAQ
  • General
  • Technical
  • Convergence
  • Islamic
  • IASB - Supporting Implementation
  • News
  • Career
  • Disclaimer
  • Archive

Copyright © 2020 FRF/MASB.
All rights reserved

  • Home
  • About Us
  • Financial Reporting Act 1997
  • FRF
  • FRF Profiles
  • Annual Report
  • Secretariat
  • MASB
  • Chairman's Statements
  • Committees/Working Groups (WG)
  • External Consultative Bodies
  • Secretariat
  • Career
  • Standard-setting Due Process
  • Our Standards
  • MASB Approved Accounting Standards for Entities Other than Private Entities
  • MASB Approved Accounting Standards for Private Entities
  • Publication Order
  • Technical Pronouncements
  • Preface to MASB Approved Accounting Standards
  • Preface to Technical Pronouncements and Guidance
  • Framework
  • Practice Statements
  • Statement of Principles
  • Technical Releases
  • Issues Bulletin
  • MAIC Educational Materials
  • MFRS Application and Implementation Guide (MAIG)
  • MAIC Questions & Answers (Q&As)
  • Other Supplementary Material
  • Other Sources of Guidance
  • Archived Technical Pronouncements
  • Islamic Finance
  • Background
  • MASB Islamic Technical Unit and Standing Committee on Islamic Financial Reporting
  • MASB Islamic technical pronouncements
  • AOSSG Islamic Finance Working Group
  • FAQ
  • Contact Us
  • Work in Progress
  • Discussion Papers
  • Open for Comment
  • Discussion Papers Pending
  • 'Superseded' Discussion Papers
  • Exposure Drafts
  • Open for Comment
  • Exposure Drafts Pending
  • 'Superseded' Exposure Drafts
  • Tentative Agenda Decisions
  • Open for Comment
  • Tentative Agenda Decision Pending
  • 'Superseded' Tentative Agenda Decisions
  • Other Draft Pronouncements
  • MASB Submissions to IASB
  • IASB Exposure Drafts
  • IASB Discussion Paper
  • IASB Draft IFRIC Interpretations/IFRIC Tentative Agenda Decisions
  • IASB Request for Information and Other Draft Pronouncements
  • MASB Submissions to Others
  • Events
  • Outreach Activities
  • Special Events
  • Archived Outreach Activities
  • Meeting Calendar
  • International Participation
  • IFRS Foundation
  • IASB Consultative Groups
  • International Groups
  • Regional Groups
  • Papers Presented
  • Webcast
  • Media Room
  • Notice of Issuance / Amendments
  • Press Releases
  • Articles
  • General
  • Useful Links
  • Local
  • International
  • FAQ
  • General
  • Technical
  • Convergence
  • Islamic
  • IASB - Supporting Implementation
  • News
  • Career
  • Disclaimer
  • Archive
  1. Home
  2. Article
  3. MASB 5 Cash Flow Statements

MASB 5 Cash Flow Statements


Extraordinary Items

  • Cash flows associated with extraordinary items should be classified as arising from operating, investing or financing activities as appropriate and separately disclosed.
  • The cash flows associated with extraordinary items are disclosed separately as arising from operating, investing or financing activities in the cash flow statement, to enable users to understand their nature and effect on the present and future cash flows of the enterprise. These disclosures are in addition to the separate disclosures of the nature and amount of extraordinary items required by MASB 3, Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies.

Interest and Dividends

  • Cash flows from interest and dividends received and paid should each be disclosed separately. Each should be classified in a consistent manner from period to period as either operating, investing or financing activities.
  • The total amount of interest paid during a period is disclosed in the cash flow statement whether it has been recognised as an expense in the income statement or capitalised in accordance with the allowed alternative treatment in MASB 27, Borrowing Costs.
  • Interest paid and interest and dividends received are usually classified as operating cash flows for a financial institution. However, there is no consensus on the classification of these cash flows for other enterprises. Interest paid and interest and dividends received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively, interest paid and interest and dividends received may be classified as financing cash flows and investing cash flows respectively, because they are costs of obtaining financial resources or returns on investments.
  • Dividends paid may be classified as a financing cash flow because they are a cost of obtaining financial resources. Alternatively, dividends paid may be classified as a component of cash flows from operating activities in order to assist users to determine the ability of an enterprise to pay dividends out of operating cash flows.

Taxes on Income

  • Cash flows arising from taxes on income should be separately disclosed and should be classified as cash flows from operating activities unless they can be specifically identified with financing and investing activities.
  • Taxes on income arise on transactions that give rise to cash flows that are classified as operating, investing or financing activities in a cash flow statement. While tax expense may be readily identifiable with investing or financing activities, the related tax cash flows are often impracticable to identify and may arise in a different period from the cash flows of the underlying transaction. Therefore, taxes paid are usually classified as cash flows from operating activities. However, when it is practicable to identify the tax cash flow with an individual transaction that gives rise to cash flows that are classified as investing or financing activities the tax cash flow is classified as an investing or financing activity as appropriate. When tax cash flows are allocated over more than one class of activity, the total amount of taxes paid is disclosed.

Investments in Subsidiaries, Associates and Joint Ventures

  • When accounting for an investment in an associate or a subsidiary accounted for by use of the equity or cost method, an investor restricts its reporting in the cash flow statement to the cash flows between itself and the investee, for example, to dividends and advances.
  • An enterprise which reports its interest in a jointly controlled entity using the equity method includes in its cash flow statement the cash flows in respect of its investments in the jointly controlled entity, and distributions and other payments or receipts between it and the jointly controlled entity.

Acquisitions and Disposals of Subsidiaries and Other Business Units

  • The aggregate cash flows arising from acquisitions and from disposals of subsidiaries or other business units should be presented separately and classified as investing activities.

An enterprise should disclose, in aggregate, in respect of both acquisitions and disposals of subsidiaries or other business units during the period each of the following:

  1. the total purchase or disposal consideration;
  2. the portion of the purchase or disposal consideration discharged by means of cash and cash equivalents;
  3. the amount of cash and cash equivalents in the subsidiary or business unit acquired or disposed of; and
  4. the amount of the assets and liabilities other than cash or cash equivalents in the subsidiary or business unit acquired or disposed of, summarised by each major category.
  • The separate presentation of the cash flow effects of acquisitions and disposals of subsidiaries and other business units as single line items, together with the separate disclosure of the amounts of assets and liabilities acquired or disposed of, helps to distinguish those cash flows from the cash flows arising from the other operating, investing and financing activities. The cash flow effects of disposals are not deducted from those of acquisitions.
  • The aggregate amount of the cash paid or received as purchase or sale consideration is reported in the cash flow statement net of cash and cash equivalents acquired or disposed of.

Page :« 2 3 4 5 6 »

  • Tel: +603 2273 3100Fax: +603 2273 9400
  • Unit 13A-1,Menara MBMR,1,Jalan Syed Putra, 58000 Kuala Lumpur,Malaysia

Video liên quan