Reconciliation of profit from operations to net cash from operating actvities FNST

simon1234

Just a little bit of help here,

Am i right in saying the only adjustments for this are
Dividends, depreciation, gain on disposal, adjustment in respect of inventories, adjustment in respect of trade receivables, adjustment in respect of payables?

Has anybody has this come up in there FNST exam?

All help appreciated

Simon

Steve Collings

Hi,

Yes - but dividends are not included in the reconciliation because they are not taken into consideration in arriving at operating profit (or profit from operations). Under IAS 7 dividends paid out usually form part of the financing activities.

Regards
Steve