IN CASH FLOW STATEMENT PRELIMINARY EXPENSES ARE SHOULD BE SHOWN UNDER
FINANCING ACTVIVITIES AS A OUTFLOW.
kamlesh purviya
(Student)
(29 Points)
Replied 05 June 2010
IN CASH FLOW STATEMENT PRELIMINARY EXPENSES ARE SHOULD BE SHOWN UNDER
FINANCING ACTVIVITIES AS A OUTFLOW.
Prateek
(B.Com(H) PGDBA CA Final)
(436 Points)
Replied 05 June 2010
@ kamlesh
plz confirm i think u are wrong....Underwriting Comm On Shares/ Deb,Dis on Issue of Shares/Deb
these will come in Financing Activities & not the Prem Exp
kumar kanakum
(ARTICAL CLARK)
(43 Points)
Replied 05 June 2010
THE PRELIMINARY EXPENSES DOES EFFECT THE COMPOSITION OF CAPITAL AND IT IS NOT AN INVESTMENT ACTIVITY SO IT WILL BE SHOWN UNDER OPERATING ACTIVITY
vineeta
(Article of assistant)
(37 Points)
Replied 05 June 2010
Prateek
(B.Com(H) PGDBA CA Final)
(436 Points)
Replied 05 June 2010
i have given two Different Examples.....read them carefully
Suman Kumar Verma
(Practicing CMA)
(1300 Points)
Replied 09 June 2010
it is added to Net profit for the purpose of calculating Operating acivity
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 15 June 2010
It is cash outflow from financing activities. Further, it will be added back to p/l a/c only if it is written off during the year.
Regards, CA Shakuntala Chhangani
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 17 June 2010
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