Question
Tara Sports Limited, an entity engaged in the
manufacturing and trading of sports equi pment, received dividends from its investment in shares . While preparing cash flow statement, this dividend should be disclose as:Solution
Explanation :
As per AS-3 and Ind AS 7 , for entities other than financial institutions , dividends received are classified as cash inflows from investing activities , because they represent returns on investments in other entities.
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