Doubt "cash flow statement"

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This query is : Resolved

Nisar (Querist)

19 September 2011 Dear all,

In cash flow statement following elements where will be use

1) Interest Paid
2) Direct Tax Paid
3) Deferred Tax

Regards,
Nisar

VISHRUT

VISHRUT (Expert)

19 September 2011 Interest Paid :- Finanacing Activity
Direct Tax Paid - Operating Activity
Deferred Tax :- Not going to effect

Message likes : 1 times

Nisar

Nisar (Querist)

19 September 2011 Hi Vishrut,

thanks, Your Exactly correct but these are used like below:

Cash Generated From Operations
Interest Paid
Direct Tax Paid
Deferred Tax
Net Cash Inflow / (Outflow) From Operations

1) "Interest Paid" has appeared Financing activity at the same time it has appeared "Net Cash Inflow / (Outflow) From Operations" So Please suggest.

Thanks & Regards,
Nisar

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)

27 September 2011 hey brother
when the interest is paid for the long term loan taken, it is part of financing activity

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)

27 September 2011 when the interest is paif for the cash credit or working capital loan, it is part of Operating activity

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)

27 September 2011 Even, in the case of taxes paid, if u can allocate the direct tax to the investing activty or any of the financing activity , u can allocate the tax in investing and financing activity also,
like tax paid on receipt of Interest on debentures, tax paid on other interest income

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)

27 September 2011 Also the deffered tax asset/ laibility created affets the part of the profit so it much be added or deducted in getting the cash from operation before working capital changes

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)

27 September 2011 please mind as per new Schedule VI the deffered tax asset/ liability is non- current asset/ liability

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