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Cash Flow Statement
Accountancy
Can we present Cash Flow Statement in this manner rather than which is suggested by ICAI? And why they added Interest on Debentures to Cash Inflow from Operating Activities? And can i directly write Profit and Loss A/c value rather than showing in Cash Outflow from operating activities.
Answers (4)
venkatesh sundharamoorthy
Interest on debentures is financing activities So which is already deducted to get netprofit ,now reversed. Follow ICAI method
ICAI has habit to complicate simple things.. I was confused because few people solved using Inflow/Outflow and ICAI solved using Add/Less which is really complicated. I think its ok if I directly give the effect rather than just writing Add or Less as ICAI does. Thankyou for telling me why they added to Cash flow from Operating Activity.
Thread Starter
A BICAI has habit to complicate simple things.. I was confused because few people solved using Inflow/Outflow and ICAI solved using Add/Less which is really complicated. I think its ok if I directly give the effect rather than just writing Add or Less as ICAI does. Thankyou for telling me why they added to Cash flow from Operating Activity.
And i am sure there is no need to write add or less I reviewed further questions and got it. Thankyou
venkatesh sundharamoorthy
Interest on debentures is financing activities So which is already deducted to get netprofit ,now reversed. Follow ICAI method
I interpreted the answer in this way. Instead of adding separate entry for add less i was trying to deduct the value from closing balance.
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