They can, however, also be included as a separate schedule or in the notes to the financial statements.

Both the approaches are in practice and both are in accordance with IFRS and US-GAAP.

This often confuse students who are studying Statement of Cash Flows that what is the correct way of disclosing or presenting interest paid or received and dividends paid or received during the period.

Many students even after learning how to prepare a cash flow statement remain unclear that under what activity should we show interest paid/received and dividends paid/received.

When a business operates as a partnership, the partners each report a percentage -- which is usually the same as their percentage of ownership -- of annual earnings on their personal returns.

As a result, the tax effects of a partnership that makes liquidating distributions only impacts the partners who receive them.

The proper disclosure is illustrated in the following example. Disclosure at the bottom of the statement of cash flows: The following presentation shows a schedule of significant non-cash investing and financing activities at the bottom of the statement of cash flows: (2).

The primary difference between C corporations and S corporations is that C corporations are taxed twice on earned income: : once at the corporate level when the income is earned, and again at the shareholder level when the income is distributed.


Therefore, in my opinion it will be good if we settle ourselves with a mix of conceptual understanding and industrial practice.If the corporation distributes appreciated property, the corporation is taxed on the gain under Code § 311(b).The amount of capital that is returned to the investor or business owner when a business is liquidated.If the partnership distributes property -- anything other than cash and property treated as cash -- during its liquidation, it has no immediate tax effect.Instead, gain or loss is delayed until you sell the property.