[WestonM]

Just declaring a dividend has no affect on financing cash flows, correct?

BEC: 93 4/18/13
FAR: 89 7/3/13
REG: 90 8/30/13
AUD: 95 11/29/13

DONE!

[Freyer002]

I don't believe so, my rationale would be that when you declare a dividend you would debit RE and credit the Div payable, but the actual cash flow wouldn't happen until you pay out the dividend. I know I didn't give you a definite answer, just thinking out loud with you lol

FAR 66 (07/01/13), 75! (10/01/13)
AUD 64 (08/12/13), 80! (11/23/13)
BEC 84! (05/22/14)
REG 77! (08/28/14)
DONE!!!!!!!!!!!!!!
"Failure is only the opportunity to more intelligently begin again"

[J]

That's correct. Obviously there is no cash payment of dividends until the date of distribution; if the date of declaration happens to fall in Reporting Period 1 and the date of distribution in Reporting Period 2, nothing would be recorded in the financial section of the Statement of Cash Flows in Reporting Period 1.

The Statement of Cash Flows is essentially reverting back to the cash basis of accounting. If cash didn't come in or go out for financing activities, it wouldn't be reported in that section, although I tend to think that a significant dividend payable might be indicated as a disclosure??!

[Author]

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