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Cash flow statements
Should refund of tax be considered while calculating cash flows from operating activities ?
Replies (6)
Tax refund is adjusted in the Taxes paid.
taxes paid is a part of operating activities.
Thanks for clarifying it sir
While calculating cash flows from operating activity under indirect method only non cash items which are credited in p&l a/c should be deducted from net profit then why should we deduct PROFIT ON SALE OF ASSETS all though there is an inflow of cash
Sale of assets is not an operating activity, So it is reduced from P&L in operating activities and treated in Investing activities - cash flow from sale of Fixed assets
I agree with Sandeep Garg. This is just a reclassification of Outflow/Inflow from sale of Fixed assets. i.e.reducing(adding ) from Operating activity and showing in the Investing activity
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