Cashflows from financing activities-group accounts, Financial Accounting

Cashflows from financing activities

Financing activities are those activities that will lead to either an increase or decrease in shareholders funds and long-term liabilities.

Examples of such cashflows include:

  • Proceeds on issue of shares
  • Repayment of loans e.g. loan stock or debentures
  • Capital repayment on finance lease
  • Dividends paid

 

IAS 7 recommends that the cashflow statement can be prepared using two methods:-

  • Direct method
  • Indirect method
Posted Date: 12/12/2012 5:35:10 AM | Location : United States







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