Dividend Received in Investing Acitivity or Financing Activity?

 Under IAS7, dividends received may be reported under operating activities or under investing activities. If taxes paid are directly linked to operating activities, they are reported under operating activities; if the taxes are directly linked to investing activities or financing activities, they are reported under investing or financing activities. Generally Accepted Accounting Principles (GAAP) vary from International Financial Reporting Standards in that under GAAP rules, dividends received from a company's investing activities is reported as an "operating activity," not an "investing activity

Dividend received is classified as operating activities . neither investing nor financing .

it should be either part of operating activity or Investing Activity.

This should be under operating activity under US GAAP.

Investing activity

The finance theory says like this:

The direct method for creating a cash flow statement reports major classes of gross cash receipts and payments. Under IAS7, dividends received may be reported under operating activities or under investing activities. If taxes paid are directly linked to operating activities, they are reported under operating activities; if the taxes are directly linked to investing activities or financing activities, they are reported under investing or financing activities. Generally Accepted Accounting Principles (GAAP) vary from International Financial Reporting Standards in that under GAAP rules, dividends received from a company's investing activities is reported as an "operating activity," not an "investing activity."

But in my opinion I think the following is correct:

-for an investment company - dividends received are recognized in Operating section of the Cash-flow Statement

-for any other company - dividends received are recognized in Investing section of the Cash-flow Statement

If you need more details, just let me know

Valentin

Dividends are the payout of the investment in a company, so they should go under investment activity

it is operating activity such as interest paid and received 

it is considered as financing activity

classified under financing activities or operating activities.