Cash dividend declared

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  • #239106

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    Hope Seok
    Participant

    Hi, if the cash dividend was only declared this yr and to be paid next year should you reflect the declaration in the cash flow statement this year as a cash reduction in the  financing section and increase in the operating section so the effect is zero. is this a correct approach

     

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  • #239110

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    Lynn Roden
    HOCK international

    Hello Hope Seok,

    Nothing on the dividend would be reported in the Statement of Cash Flows for the year during which the dividend was declared because nothing would be paid during that year. In the year the cash dividend is paid, it would be reported in the SCF as a cash outflow from financing activities.

    Lynn

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