Register / AASB 107 Statement of Cash Flows / AASB 107 paragraph Aus6.1
Interest and dividends received may be operating cash flows
The entity may put interest and dividend receipts in operating activities rather than investing activities, which is where the definition otherwise places them. The permission works together with paragraph Aus34D.1.
Why the paragraph exists
The definition of investing activities normally puts interest and dividends received there. This paragraph opens the operating route for two entity groups.
In practice
The permission moves the receipt of interest and dividends, not the payment of interest. Read the later AASB 107 paragraph with this one before the policy note is written.
Check the comparative classification under paragraph 31. A change of policy without the comparative disclosure is an incomplete answer.
The mistake to avoid
The common mistake is to move every interest line into operating because the definition is read too broadly.
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 and dividends received may be operating cash flows.
- Open a workpaper for the first evidence item: The accounting policy note that states the classification of interest and dividends received and the paragraph relied on.
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 6, 31 and Aus34D.1
Record note
The permission covers receipt of interest and dividends. It does not by itself move interest paid.
Questions
What does AASB 107 paragraph Aus6.1 require in practice?
The permission moves the receipt of interest and dividends, not the payment of interest. Read the later AASB 107 paragraph with this one before the policy note is written.
What is the common mistake under AASB 107 paragraph Aus6.1?
The common mistake is to move every interest line into operating because the definition is read too broadly.
What evidence should be kept?
At least: The accounting policy note that states the classification of interest and dividends received and the paragraph relied on.; The statement of cash flows with the classification applied consistently across the comparative 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 Aus6.1. Record retrieved 2026-10-20.