Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p96
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 257064–259936

the statement of profit or loss, disclosed in the statement of comprehensive income and the changes during the period in inventories and operating receivables and payables and any other operating cash flows for which the corresponding income or expenses are not classified in the operating category.
 ...

Interest and dividends
31 Cash flows from interest and dividends received and paid shall each be presented disclosed separately. Each shall be classified in a consistent manner from period to period applying paragraphs 32, 33A and 34A–34Das either operating, investing or financing activities.
32 The total amount of interest paid during a period is included disclosed in the statement of cash flows whether it has been recognised as an expense in profit or loss or capitalised in accordance with AASB 123 Borrowing Costs.
33 [Deleted]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 entities. Interest paid and interest and dividends received may be classified as operating cash flows because they enter into the determination of 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.
33A An entity shall classify dividends paid as cash flows from financing activities.
34 [Deleted]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 entity to pay dividends out of operating cash flows.
34A An entity, other than those entities described in paragraph 34B, shall classify:
(a) interest paid (as described in paragraph 32) as cash flows from financing activities.
(b) interest and dividends received as cash flows from investing activities.
34B An entity that invests in assets or provides financing to customers as a main business activity (as determined applying paragraphs B30–B41 of AASB 18) shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how – applying AASB 18 – it classifies dividend income, interest income and interest expenses in the statement of profit or loss. An entity shall classify the total of each of these cash flows in a single category in the statement of cash flows (that is, either as operating, investing or financing activities).
34C In applying paragraph 34B, if an entity classifies the total of each of dividend income, interest income and interest expenses in a single category