Fund Flow Statement

See Vikas..in funds flow statement..u have two choices according to Provision for tax..that is if u wanted to treat it as current liability..ucan treat it..and other choice is debit the current year provision of taxto P&l app a/c and tax paid to should be posted in application of funds..

in the same way proposed didvidend also can be treated as current liability..if u don't want to do so.the other option is same as above..dividend paid is posted in application of funds and proposed dividend is debited in p&l app a/c ..

Originally posted by : Sasanka Bhalaki
	See Vikas..in funds flow statement..u have two choices according to Provision for tax..that is if u wanted to treat it as current liability..ucan treat it..and other choice is debit the current year provision of taxto P&l app a/c and tax paid to should be posted in application of funds.. in the same way proposed didvidend also can be treated as current liability..if u don't want to do so.the other option is same as above..dividend paid is posted in application of funds and proposed dividend is debited in p&l app a/c ..

agreed

as funds flow is based on realtime basis, no future provisions take place in the year, unless the record date or date of accural is placed in the period of fund flow statement, 

As per the definition of current liabilty, liability related to only one year or less is treated as current liabilty. As far as provision for tax and proposed dividend is not only related to one year because in provision also advance tax is to be adjusted and also in proposed dividend if some unpaid dividend (until transfer to education and protection fund)  is there it should also included in proposed dividend.

Hi all,

Can anybody help me how to prepare fund flow statement & cash flow statement thru an example...

Thanks and regards,

A. Nachiappan

nachi_annamalai @ yahoo.co.in