What is the treatment for previous year's interim dividend?

Dear Student, Interim Dividend: These Dividends are declared and paid by the company before the Annual General Meeting of the Company. In Cash Flow Statement, it is added to Net Profit before Taxation and Extraordinary Items (under Cash Flow from Operating Activities) because while preparing Profit and Loss A/c these must have been subtracted. On the other hand, it is deducted from Cash Flow from Financing Activities because it is outflow of Cash (financing nature). Regards