The 'Fair Value Measurement' (Ind AS 113) defines fair value as:
A. Liquidation value
B. Historical cost
C. Replacement cost
D. Price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
S1: In a cash flow statement under Ind AS 7, dividends paid can be classified as either operating or financing activities. S2: Interest paid can be classified as either operating or financing activities. Which statement(s) is/are correct?
Explanation:
Ind AS 7 allows flexibility. Dividends paid can be classified as financing (cash outflow for financing) or operating (to assist in determining cash from operations). Interest paid can be operating or financing. Both are correct.
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