Cash flow statement

Piyush Shirodkar

CA Final Student

1358 Points Posted on 17 August 2018

cash flows from investing activities

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Posted on 17 August 2018

Income from Investing Activities

Raph Ael

57 Points Posted on 17 August 2018

but in institute's book it's shown as extraordinary item under operating activities

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 17 August 2018

If Insurance claim on Assets in fire then

Srivalli

Student

200 Points Posted on 17 August 2018

If it is insurance then it is shownunder investment activities , insurance claims is shown under extraordinary items

Piyush Shirodkar

CA Final Student

1358 Points Posted on 17 August 2018

Actually it's an extraordinary item, as loss of assets caused by fire won't be part of day to day business activity.
Hence it shall be treated as cash flows from operating activites.

Raph Ael

57 Points Posted on 17 August 2018

but even as an extraordinary item why is it coming under operating wouldn't investing be more appropriate

Dilpreet Singh Chadha

169 Points Posted on 17 August 2018

extra ordinary items

Piyush Shirodkar

CA Final Student

1358 Points Posted on 17 August 2018

Go as per what AS 3 and ICAI says.
They are always correct.
As per my view both answers are correct.
But in exam only 1 answer accepted based what assumption you make.
Such assumption shall match with ICAI answer then only you will be rewarded marks. :)

Shashank Srivastav

40 Points Posted on 18 August 2018

Insurance claims received against loss of stock or loss of profits are extraordinary
operating cash inflows for all enterprises.
Insurance claims received against loss of fixed assets are extraordinary investing
cash inflows for all enterprises.

These are the words from the study material.