Cash flow statements
This query is : Resolved
CA Saurabh Kataria
(Querist)
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.
RAJU S NARAYANAN
(Expert)
25 April 2013
liability has to be considered at reinstated figure
CA Saurabh Kataria
(Querist)
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.
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