Cash Flow Statement

IPCC 1032 views 2 replies

Rajendra

Student

61 Points Joined October 2007

How will u treat the following item in a CFS:

Receipt of Grant for capital projects 12,00,000
Amortization of Capital Grant 6,00,000

This question came in CA papers in 2001 & also appears in the module but I could not understand the logic behind the treatment. Thanks in advance.

Replies (2)

CA Himanshu Awasthi

Manager (Advances)

520 Points Joined November 2007

Receipt of capital grant will come under the head of Cash from Financing activities n Amortisation will be less under cash frm extraordinary activities under the head of cash frm operating activities.