Cash flow Statement

IN CASH FLOW STATEMENT PRELIMINARY EXPENSES ARE SHOULD BE SHOWN UNDER

FINANCING ACTVIVITIES AS A OUTFLOW.

@ 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