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36 Taxes on revenue arise on transactions that give rise to cash flows which would possibly be categorized as working, investing or financing actions in a statement of cash flows. Taxes on revenue 35 Money flows arising from taxes on income shall be individually disclosed and shall be categorized as cash flows from operating activities except they are often specifically identified with financing and investing activities. 32 The total quantity of curiosity paid throughout a interval is disclosed within the statement of cash flows whether it has been recognised as an expense in revenue or loss or capitalised in accordance with Ind AS 23, Borrowing Prices.
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- 26 The money flows of a overseas subsidiary shall be translated at the change rates between the useful currency and the international forex at the dates of the money flows.
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Modifications in ownership pursuits in subsidiaries and different companies 39 The aggregate cash flows arising from acquiring or shedding control of subsidiaries or other businesses shall be introduced individually and categorised as investing actions. Nonetheless, it is extra appropriate that curiosity paid and interest and dividends obtained are categorized as financing cash flows and investing cash flows respectively, as a result of they’re costs of acquiring monetary resources or returns on investments. Some argue that interest paid and interest and dividends received may be classified as operating cash flows as a outcome of they enter into the determination of revenue or loss. Nonetheless, there isn’t a consensus on the classification of these money flows for different entities.
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