Cash flow statement direct method

AS 1622 views 1 replies

Can a public limited company prepare its Cash Flow Statement using Direct Method?

Replies (1)

For listed companies listing agreement requires - 

The Cash Flow Statement will be prepared in accordance with the Accounting Standard on Cash Flow Statement (AS-3) issued by the Institute of Chartered Accountants of India, and the Cash Flow Statement shall be presented only under the Indirect Method as given in AS-3".

However there is no such requirement for unlisted public companies. In my opinion, public limited companies which are not listed can use direct method. 


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