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While tax expense may be readily identifiable with investing or financing actions, the related tax cash flows are sometimes impracticable to determine and should arise in a special interval from the money flows of the underlying transaction. Nevertheless, it is considered extra appropriate that dividends paid should be categorised as money flows from financing activities because they’re price of acquiring monetary resources. 34 Some argue that dividends paid may be categorized as a part of money flows from operating actions so as to assist customers to find out the power of an entity to pay dividends out of working money flows. Dividends paid must be categorised as cash flows from financing actions. An entity shall report individually major lessons of gross cash receipts and gross money payments arising from investing and financing activities, except to the extent that money flows described in paragraphs 22 and 24 are reported on a internet foundation. Reporting money flows from investing and financing actions 21.
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