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Accountancy
1. Why is short term investment in liquid equity shares not considered as cash equivalents? 2.Treatment of these items in Cash flow statement with explanation:- a) Tds on interest income earned on investment made b) Tds on interest earned on advance given to suppliers Kindly help me to solve these doubts
Answers (7)
Sudha Reddy
TDS is usually classified as cash flow from operating activities but if it is specifically mentioned that TDS is for investing or financing it is classified accordingly as the case may be.
Ok mam.. But in study material it is given as "No cash flow"
Thread Starter
Pushkala SOk mam.. But in study material it is given as "No cash flow"
What are you referring to
Thread Starter
Pushkala SThis question in icai study material mam
Its a cash flow. Like mentioned earlier, two approaches can be taken if taken as operating cash flow there wont be any adjustment to be made further But if it is categorised as investment or financing activity then adjust net profit and show it under the respective head.