ravi singhal (CA Final) (96 Points)
06 April 2011
hey friends can you please tell me that why we do not consider provision for tax, advance tax paid, and proposed dividend in working capital changes .They are
also current assets and current liabilities only na? plz hellp friends
Siddhi Helekar
(student ipcc)
(111 Points)
Replied 07 April 2011
these items mentioned by you r special category items. they come with adjustment.
RIMA TAUNK
(ARTICLE ASSISTANT)
(56 Points)
Replied 07 April 2011
ya income tax aujustments as u told are though current assets and current liabilities items but frm d calculation of working capital changes,it is excluded from d list of CA & CL.Also one of d reason is it is an extraordinary item needs additional adjustment & special treatment hence separately disclosed for the convenience of stakeholders and as per AS -3.
CAclubindia
