Cash flow statement
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 November 2014
There is payment of interest on loan which has been capitalized to Fixed Asset A/c as per AS 16.
Whether this interest payment is to be shown as cash outflow under Investing Activity or Financing Activity?
If interest is debited to Inventory then where will we show interest payment?
In Financing activity or Operating activity?
Whether this interest payment is to be shown as cash outflow under Investing Activity or Financing Activity?
If interest is debited to Inventory then where will we show interest payment?
In Financing activity or Operating activity?
24 November 2014
if its capitalised then its forming part of assets and must be disclosed under cash flow from investing activity.
25 November 2014
capitalizing the intt. will investing activity and intt.on stock under finance activity
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