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AS 3
Accountancy
Practical qn5 (iv) (v) and illustration 3 answers are confusing
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Insurance claim received - since related to fixed assets - cash inflow from investing activity. This is an extraordinary item as per AS-5 and will be disclosed separately. Bad debt expense - when you prepare under indirect method, the movement in debtors automatically captures the adjustment and hence no treatment needed. This is covered in detail in video No 13.
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Insurance claim received - since related to fixed assets - cash inflow from investing activity. This is an extraordinary item as per AS-5 and will be disclosed separately. Bad debt expense - when you prepare under indirect method, the movement in debtors automatically captures the adjustment and hence no treatment needed. This is covered in detail in video No 13.
Sir, In illustration 3(pg.3.61) ii) TDS on interest received from subsidiary company is classified as cash flow from INVESTING ACTIVITY . whereas in practical qn 5 iv) TDS on interest income earned on investments is classified as NO CASH OUTFLOW/INFLOW. WHY SIR?
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