Forums
Back
AS3
Accountancy
When should we adjust for dividend (means add to net profit) under indirect method??? In some answers it is adjusted and in some it is only shown as cash outflow under financing activities ...
Answers (6)
Best Answer
khushi goyal
When it is given in the question specifically that dividend is paid than only we will adjust it to net profit otherwise no adjustment is needed...
As we are making CFS and we want only cash net profit....
khushi goyal
Can you share in which question dividend is not taken as paid
in q4 of study material page4.121, it is adjusted in net profit but in q5 & q6 it is not adjusted. i need to know why different treatments given and what is the correct one
Thread Starter
Lalit Sanpalin q4 of study material page4.121, it is adjusted in net profit but in q5 & q6 it is not adjusted. i need to know why different treatments given and what is the correct one
When it is given in the question specifically that dividend is paid than only we will adjust it to net profit otherwise no adjustment is needed...