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<p><strong>will it be Cash inflow from operating or investing activities in case of a. </strong></p> <p><strong>(i)Finance Company. </strong></p> <p><strong>(ii)Non-Finance Company. </strong></p>
Operating for a finance company
Investing for a non finance company
I agree with SREEDEVI SUNILKUMAR, but I will put some details for the new bees.
Definition of 'Operating Activities'
A company’s typical daily processes that generate income. Operating activities pertain to a company’s core business activities, such as manufacturing, distributing, marketing and selling a product or service. These activities should provide the majority of a company’s cash flow and will largely determine whether a company is profitable.
Operating activities along with a company’s investing and financing activities make up the statement of cash flows. Investing activities refer to earnings or expenditures on long-term assets, such as equipment and facilities, while financing activities are the cash flows between a company and its owners and creditors from activities such as issuing bonds, retiring bonds, selling stock or buying back stock.
Definition of 'Cash Flow From Investing Activities'
An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets such as plant and equipment.
Investing Activity - Non finance
Operating activities in case of a finance company and investing activities in case of Non-Financing Company.
If a company main business is finance (bank) if this company receive divident it will be treated as finance activties and vise virse.
In the case of Finance Company dividend received is operating activity ( IAS7).
In the case of Non finance company there are differences of opinion, generally it can be taken as investment activity because they are return on investment. But there are views that this can be taken in operating activity also, since they enter into the determination of profit or loss.
(i)Finance Company ---------> operating activities
(ii)Non-Finance Company ----------> investing activities
Both are Investing Activities
