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birudev sanatan gire

birudev sanatan gire (Querist)
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24 April 2012 what are the financing, operating ,investing activities? tell me sir with example

Hari Beldona

Hari Beldona (Expert)
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24 April 2012 As per AS-3 financing activities are 1.Issue of equity shares 2.Redumption of debentures
Operating Activity 1.Consumption of raw material 2.Power charges 3.Labou
Investing Activity 1.Purchase of Plant & Machinery 2.Sale of land

CA Rakesh Goenka

CA Rakesh Goenka (Expert)
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24 April 2012 Operating activities :

(a) cash receipts fromthe sale of goods and the rendering of services;
(b) cash receipts fromroyalties, fees, commissions and other revenue;
(c) cash payments to suppliers for goods and services;
(d) cash payments to and on behalf of employees;
(e) cash receipts and cash payments of an insurance enterprise for premiums and claims, annuities and other policy benefits;
(f) cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities; and
(g) cash receipts and payments relating to futures contracts, forward contracts, option contracts and swap contractswhen the contracts are held for dealing or trading purposes.

Financial activities :

(a) cash proceeds from issuing shares or other similar instruments;

(b) cash proceeds from issuing debentures, loans, notes, bonds, and other short or long-term borrowings; and

(c) cash repayments of amounts borrowed.

Investing activities :

(a) cash payments to acquire fixed assets (including intangibles). These payments include those relating to capitalised research and development costs and self-constructed fixed assets;

(b) cash receipts fromdisposal of fixed assets (including intangibles);

(c) cash payments to acquire shares, warrants or debt instruments of other enterprises and interests in joint ventures (other than payments for those instruments considered to be cash equivalents and those held for dealing or trading purposes);

(d) cash receipts fromdisposalof shares,warrants or debt instruments of other enterprises and interests in joint ventures (other than receipts fromthose instruments considered to be cash equivalents and those held for dealing or trading purposes);

(e) cash advances and loansmade to third parties (other than advances and loans made by a financial enterprise);

(f) cash receipts from the repayment of advances and loans made to third parties (other than advances and loans of a financial enterprise);

(g) cash payments for futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the payments are classified as
financing activities; and

(h) cash receipts from futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the receipts are classified as
financing activities.ivities :

Ki$hor B

Ki$hor B (Expert)
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27 April 2012 seems the two experts have covered all the bases!

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