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Cash flow statement doubt
If we have an interest income of 100000 on which tds is 10000, what is the amount of interest income to be shown in investing activities? 100000 or 90000?
Replies (5)
show 100000 as income from investment activity and rs 10000 as tax provides in books under cash flow from operating activity..
in that case 10000 included in 100000 will also get the treatment of interest actually received in cash which is not so. it is provided in AS 3 that only cash inflows or outflows are to be shown in the CFS. then why is this practice followed?
In my view ,Rs 90000 is to be shown in investing activities .
Agreed with Mansha..... 90000 should be shown under investing activities.
Hi Anu,
Even though we dont receive that 10,000, still it is a cash item and hence it shall be shown as an expenses under operating activities and Rs.1,00,000 shall be shown as an income under investing activities. This will provide better disclosure of financial statements.
Correct me if I am wrong.
Thanks in Advance.
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