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Cash flow statement

IPCC 1554 views 11 replies
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57 Points Posted on 17 August 2018
where will we show insurance claim received on loss of fixed assets due to fire
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On 17 August 2018 at 11:48 Report
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CA Final Student
1358 Points Posted on 17 August 2018
cash flows from investing activities
8 Reply
On 17 August 2018 at 11:56
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Coaching and Practice in Tax Audit Law
4429 Points Posted on 17 August 2018

Income from Investing Activities

54 Reply
On 17 August 2018 at 12:03
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57 Points Posted on 17 August 2018
but in institute's book it's shown as extraordinary item under operating activities
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On 17 August 2018 at 12:11
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"Do the Right Thing...!!!"
128147 Points Posted on 17 August 2018
If Insurance claim on Assets in fire then
463 Reply
On 17 August 2018 at 12:14
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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
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On 17 August 2018 at 14:00
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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.
8 Reply
On 17 August 2018 at 14:40
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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
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On 17 August 2018 at 17:33
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169 Points Posted on 17 August 2018
extra ordinary items
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On 17 August 2018 at 19:08
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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. :)
8 Reply
On 17 August 2018 at 19:23
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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.
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On 18 August 2018 at 09:24
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36 Points Posted on 20 August 2018
it's included in cash flow from operating activities
if you think it's neither investing nor financing such item shall be included in operating ..
2 Reply
On 20 August 2018 at 07:42


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