Can anyone please let me know why depreciation has not been taken into account while calculating CFAT?
Varshaa M
CA Final
★ 33K+
18-Apr-23 11:34
197
Answers (4)
Since there is no tax, you don't have to [add back non cash item and calculate tax on net profit and add back dep to get net cash inflows]
It is straight away cash inflow as there is no tax
Abishek M
CA Final
★ 11K+
18-Apr-23 11:39
As there is no tax, there is just subtraction of depreciation for calculating profit & then addition of same amount of depreciation for Net cash flow. Appears as no effect. Hence.....
Vedant Bedekar
CA Final
★ 7K+
18-Apr-23 11:50
Thanks a lot
Thread Starter
Varshaa M
CA Final
★ 33K+
18-Apr-23 12:24
If there is no tax there will be no effect on non cash expenses