Cash Flow Statement

Well According to me if the O.D is prisisting one i.e., Cash Credit Limit it should be treated as Cash equivalents. If its an temporary arrangements it should be treated as part of Financing activities.

From exam point of view:- If Cash in hand Or bank balance is given then treat bank overdraft as a current liability.

If Cash in hand and Bank balance both are given then treat it as CASH EQUIVALENT.

We cant take it as financing activity in any case.

sorry one typing mistake in above

From exam point of view:- If Cash in hand Or bank balance is given then treat bank overdraft as a current liability.

If Cash in hand and Bank balance both are not  given then treat it as CASH EQUIVALENT.

We cant take it as financing activity in any case.

Hey guys thanks for replying.But I m sorry i m not al all satisfied with these answers.I have read a few books and also searched net regarding this matter but there seems to be lot of controversy over this.In some books,it is treated as a part of cash equivalent whereas in some others it is  treated a part of financing activities.PLZ do some RESEARCH and reply PLZ.its really a debating matter.