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Non cash items

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(Querist)
24 July 2012 In case of Company's Accounts as per Companies Act,1956 How do you define the term "Non cash Items" for the purposes of computing Cash profits/(Losses) after adding/deducting from Book profit/(Loss) as per Profit & Loss Account. I mean what the said term includes. for example Depreciation.
Please provide the illustrative list so far the term "Non cash items" includes is concerned.
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Sanjay Chauhan (IFRS)

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Sanjay Chauhan (IFRS) (Expert)
24 July 2012 Any debit or credit which is notional and no established cash obligation / outflow, is non cash item. This therefore does not include provisions debited in profit & loss account as they are similar to creditors.

Examples of Non cash items include:
1. liability/loan converted to equity
2. assignment of receivable and payables with third party.
3. Depreciation / amortisation
4. MTM of derivatives
5. Forex MTM
6. Impairment losses and reversals.
7. Converting receivables into ICDs (shift from operating to investing activity)
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