Cashflows from financing activities-group accounts, Financial Accounting

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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

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