IN CASH FLOW STATEMENT PRELIMINARY EXPENSES ARE SHOULD BE SHOWN UNDER
FINANCING ACTVIVITIES AS A OUTFLOW.
Menu
Cash flow Statement
@ 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
THE PRELIMINARY EXPENSES DOES EFFECT THE COMPOSITION OF CAPITAL AND IT IS NOT AN INVESTMENT ACTIVITY SO IT WILL BE SHOWN UNDER OPERATING ACTIVITY
in cash flow statement: c plrelimnary expeses are those expenses which r not related to current period and if u have charged dese expenses to profit and loss a/c firstly u have to add it back to the Oprating expenses to find out corrent outflow of cash and then after finding net outflow deduct it after charging tax from oprating expenses
i have given two Different Examples.....read them carefully
it is added to Net profit for the purpose of calculating Operating acivity
OPerating activity......
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
All AS at one place
https://www.caclubindia.com/forum/all-as-at-one-place-87927.asp
Recent Topics :
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
- Demand from TRACES
Related Topics :
CAclubindia
