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Cash Flow Statement

21 October 2016

Garden Ltd. acquired fixed assets viz. plant and machinery for Rs.20 lakh. During the same year it sold its firniture and fixtures for Rs.5 lakh. Can the company disclose net cash outflow towards purchase of fixed assets in the cash flow statement as per AS-3?

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5 Replies

Priya R (17 Points)
Replied 21 October 2016

You can show gain on sale of asset under investing activities.

Anmol Singla (808 Points)
Replied 21 October 2016

no both sale of furniture and purchase of plant and machinery has to been shown separately. It is the important point to remember that we can't netting off items

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 24 October 2016

Hello

Agree with Anmal...

Prajakta Save (Chartered Accountant) (46 Points)
Replied 24 October 2016

Purchase/sale from Fixed assets need to show in Investment activities. also Depreciation & Profit/loss from Sale of FA need to show under operating activities in adjustments.