Register / AASB 107 Statement of Cash Flows / AASB 107 paragraph Aus34D.1
Interest paid, interest received and dividends received may be operating
Notwithstanding the paragraph 34A to 34D classification rules, the entity may classify interest paid, interest received and dividends received as cash flows from operating activities.
Why the paragraph exists
For a superannuation fund or a public sector entity, these flows can be part of the operating cycle. The paragraph provides the permission the AASB 18 category model would otherwise deny.
In practice
Choose the classification for each of the three cash flow types and apply it consistently. A mixed presentation inside one type is not what the paragraph permits.
Update the policy note and the comparative together. The permission is visible in the statement, so an undocumented change is easy for an auditor to find.
The mistake to avoid
The common mistake is to move dividends received into operating but leave interest received in investing.
Who it binds
A superannuation entity that applies AASB 1056, or a public sector not-for-profit other than a higher education provider.
What to do before the date
- Confirm the entity falls in this group: Superannuation entity and NFP public sector.
- Put the requirement into the financial statements preparation plan: interest paid, interest received and dividends received may be operating.
- Open a workpaper for the first evidence item: The accounting policy note covering interest paid, interest received and dividends received.
Evidence an auditor will ask for
Dates
| Date | What it means | Applies to |
|---|---|---|
| 2027-12-31 | The instrument commences for this paragraph | superannuation, NFP public sector |
| 2028-01-01 | First annual periods beginning on or after this date apply the Standard | superannuation, NFP public sector |
Commencement and application are separate tests.
Cross-references
- AASB 107 paragraphs 31 to 34D
- AASB 1049 paragraph 14(f)
Record note
The choice is per cash flow type and must be consistent period to period. It does not create a free mix inside a single type.
Questions
What does AASB 107 paragraph Aus34D.1 require in practice?
Choose the classification for each of the three cash flow types and apply it consistently. A mixed presentation inside one type is not what the paragraph permits.
What is the common mistake under AASB 107 paragraph Aus34D.1?
The common mistake is to move dividends received into operating but leave interest received in investing.
What evidence should be kept?
At least: The accounting policy note covering interest paid, interest received and dividends received.; The statement of cash flows with those lines in the operating section, and consistency with the prior period. The kit carries each one as a row with an owner column to complete.
Source
This page is our statement of the paragraph, cited so you can check it. Read F2026L01162 on legislation.gov.au.
Source pointer: AASB 107 paragraph Aus34D.1. Record retrieved 2026-10-20.