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Cash flow statement
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Why they have not included the premium on redemption of preference share in operating activity (to eliminate). They have only shown the premium on redemption of preference share in finance activity.
Answers (3)
Sahibdeep Singh
Here they have not mentioned that premium on redemption was charged to P&L and they have given only specific list of items. Hence, not added back. You can write a note alongside, assumed premium was not charged to P&L.
Yes sir.. May i know the reason for this? Because, in all the other problems they add back premium on redemption. Why they have followed a different treatment here? If i charge it from p&l, iam not getting the answer
Thread Starter
vs navinYes sir.. May i know the reason for this? Because, in all the other problems they add back premium on redemption. Why they have followed a different treatment here? If i charge it from p&l, iam not getting the answer
Reason is here they have given the list of items which were adjusted in net profit. So, there are specific points mentioned and premium on redemption is not mentioned which means it was not adjusted. We should put it in Notes below that we did not add back assuming it was not adjusted.
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