Page 275 - F3 -FA Integrated Workbook STUDENT 2018-19

Statement of cash flows

3.4 Cash flows from financing activities

Cash inflows may include:

 cash proceeds from the issue of shares

 cash receipts of loans/debenture

Cash outflows may include:

 cash repayment of loans/debentures

 dividends paid

Calculation of the proceeds from the issue of shares is derived by comparison of the
amounts included in the statement of financial position brought forward and carried
forward on two accounts:

 share capital

 share premium

It is usually necessary to reconcile the opening and closing retained earnings
balances to identify any dividend paid in the year.

269