Cash flow statements
This query is : Resolved
24 April 2013
Hi
Please tell me while preparing the cash flows statement, does we have take into consideration the liabilities without giving the effect of forex reinstatement, i.e. for an example i have taken an loan of 1 Million USD and when loan was taken 1USD = 45INR and at the time of year ending 1USD = 54INR, now the liability will appear in financials at reinstated figure of INR 54 Million, so while calculating cash flows, liability has to be taken at 54 Million or 45 Million, i.e. liability should be taken at reinstated figure or without reinstatement of foreingn fluctuation.
Please tell me while preparing the cash flows statement, does we have take into consideration the liabilities without giving the effect of forex reinstatement, i.e. for an example i have taken an loan of 1 Million USD and when loan was taken 1USD = 45INR and at the time of year ending 1USD = 54INR, now the liability will appear in financials at reinstated figure of INR 54 Million, so while calculating cash flows, liability has to be taken at 54 Million or 45 Million, i.e. liability should be taken at reinstated figure or without reinstatement of foreingn fluctuation.
25 April 2013
liability has to be considered at reinstated figure
25 April 2013
Sir, it would be great if you provide any reference as i have to provide reference in order to take a final call on this issue.
19 May 2013
Cash flow is to be prepared on the basis of your accounts and on actual s and not on the market rate so whatever you have landed is to be taken as per your books and not as per market rate.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
