Page 11 - 27. COMPILER QB - IND AS 7

Q8 (RTP Nov. 22)

What will be the classification for following items in the statement of cash flows of both
(i) Banks / Financial institutions and (ii) Other Entities?

S. No. Particulars

1. Interest received on loans and advances given
2. Interest paid on deposits and other borrowings

3. Interest and dividend received on investments in subsidiaries, associates and in other entities
4. Dividend paid on preference and equity shares, including tax on dividend paid on preference and equity
shares by other entities

5. Finance charges paid by lessee under finance lease
6. Payment towards reduction of outstanding finance lease liability
7. Interest paid to vendor for acquiring fixed asset under deferred payment basis

8. Principal sum payment under deferred payment basis for acquisition of fixed assets
9 Penal interest received from customers for late payments
10. Penal interest paid to suppliers for late payments
11. Interest paid on delayed tax payments

12. Interest received on tax refunds

Solution

The following are the classification of various activities in the Statement of Cash Flows:

S. No. Particulars Classification for reporting cash flows
Banks / financial Other entities
institutions

1. Interest received on loans and advances Operating Activities Investing activities
given
2. Interest paid on deposits and other Operating Activities Financing activities
borrowings

3. Interest and dividend received on Investing activities Investing activities
investments in subsidiaries, associates and

in other entities
4. Dividend paid on preference and equity Financing activities Financing activities
shares, including tax on dividend paid on
preference and equity shares by other

entities
5. Finance charges paid by lessee under Financing activities Financing activities
finance lease

6. Payment towards reduction of outstanding Financing activities Financing activities
finance lease liability

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