Cash flow

Actually they appear in operating activities under head changes in operating items See we assume that whenever there are changes in current assets or liabilities we assume that there will be changes in cash flow For suppose opening trade receivable we have 4 and closing bal we have 2 so it means that we have received money from trade receivable to the extent of 2 /- so this represents inflow of cash. As debtors are related to day to day activities so changes in them belongs to operating items

Thanusha Lakshmi

CA Final

★ 3K+

24-Sep-22 21:50

As per AS 3 the current investment are part of cash & cash equivalent so how is it possible to make it part of operating activities

Thread Starter

Raja Ram charan

CA Inter

★ 25

24-Sep-22 22:18

Non current investment changes shall be shown in investment activities But changes in current investment shall be shown in changes in working capital

Thanusha Lakshmi

CA Final

★ 3K+

24-Sep-22 22:46

Thank you ð???ð???

Thread Starter

Raja Ram charan

CA Inter

★ 25

24-Sep-22 23:03

As per AS 3 Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. So current investments which are not a part of cash and cash equivalents would be a part of investment activity only.

CA Suraj Lakhotia

Admin

25-Sep-22 07:38

Thank you sir...

Thread Starter

Raja Ram charan

CA Inter

★ 25

26-Sep-22 03:49