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deffered tax assets/liability in cash flow

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 June 2010 Dear all experts ,

I need a help i wan a know where to place the deffered tax assets/liability in cash flow. is it part to operating financial or investing...
pls answer with clear explanations pls .....
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CA Kishore Tallam

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CA Kishore Tallam (Expert)
14 June 2010 Hi..
Deferred Tax WILL NOT ENTER Cash Flow Statement at all because Cash flow starts with Profit before tax and Prior Period Items.
Whatever direct taxes actually paid are shown under Income taxes paid as a separate line item in Operating Activities.
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