Question:
Several income items have been classified differently in the statement of cash flow over time and worldwide. For example dividends received and interest received previously were classified as "operating cash flows" and can be now classified as "investing cash flow" in the Australian accounting standards. Some countries even allow them to be classified in the "financing cash inflows" or allow reporting entities discretion over how to classify them.
A. How would you classify these two items in the statement of cash flows?
B. Is it important to have standard classification?