In question of fund flow statement we are given comparative balancesheet in which values of asset and liability of current year and previous year are given . If value of any asset say land & building in current year is Rs4,00,000 and in previous year it is Rs4,35,000 .and there is no additional information given for same.what I should assume for preparing fund flow statement that a portion of land and building is sold out or deprecited.(in absence of additional information) becouse its accounting treatment are different
I have two option that if Treat that that portion of L&B is sold out it become source of cash in fund flow statement and if i assume that that portion is deprecited then it will come under sources of cash inflow under head funds from operation but its accounting treatment is different.Please help me ?
CAclubindia
