Cash flow statement

This query is : Resolved

Prerna (Querist)
Follow

02 May 2011 How to treat interest payable/ receivable given in the b/s for 2 years. Do we show it under working capital changes or interest received separately ( actual cash) under investing activities?

Thanks to whosoever replies.

Prerna

Prerna (Querist)
Follow

02 May 2011 under indirect method.

CA SAURABH GARG

CA SAURABH GARG (Expert)
Follow

02 May 2011 treat as under working capital change

Message likes : 1 times

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
Follow

02 May 2011 As per AS 3
Interest Received.
from investment should be shown under investing activity.
For short term investment classified as cash equivalents should be considered as cash flow from operation activity

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
Follow

02 May 2011 As per AS 3
Interest paid:
-->on loans/debts is financing activity.
-->on working capital loan and any other loan taken to finance operating activity is in operating activity.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
Follow

02 May 2011 hence whatever applicable as operating activity that can be taken to working capital changes.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now