Ind As 7 Cash Flow statements

Accountancy

In Image attached while doing Income from Operating activities in indirect method, we will do approprite changes considering changes in current assets ? In the given question I am thinking that we have to consider changes in Investments to as it is given in Current assets. but answer provided in ICAI material not considered (2nd picture), can anyone explain the same.

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Sai Vema

CA Final

★ 108K+

14-Jun-24 08:45

395

Answers (2)

Investments should be considered under Investing activity. The working capital adjustments is for operational current assets.

CA Suraj Lakhotia

Admin

14-Jun-24 09:37

https://youtu.be/BCujphqmx64?si=OI3p8TgYkrui8UsV&t=252 Logic and explanations covered here.

CA Suraj Lakhotia

Admin

14-Jun-24 09:38