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Chapter 9
3.12 Financing activities
Cash inflows may include:
proceeds from the issue of shares and
proceeds from the issue of loans/debentures
Cash outflows may include:
repayments of loans/debentures and
dividends paid
The proceeds from share issues will be calculated by looking at the movement on the
share capital and share premium accounts in the SOFP.
The proceeds/repayment of loans/debentures will be calculated by looking at the
movement on the loan/debenture accounts in the SOFP.
The dividend payment can either be found in the SOCIE or by looking at the
movement on the retained earnings account as follows:
Retained earnings
Dividend paid (Bal fig) X Bal b/d X
Bal c/d (SOFP) X Profit or loss for the year X
––– –––
X X
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