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Fund flow statement

(Guest)

While preparing FFS ,Interest on debentures is to be considered as use of fund and added back in adjusted profit loss a/c .Am I right ?

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Vikas Gupta (Tax Executive) (530 Points)
Replied 25 May 2016

Payment of interest on debentures is undoubtedly 'use of funds' but as far as I think it is not added back in P & L a/c.

(Guest)

In Funds from operations (adjusted profit &Loss a/c),only operating expenses are considered.That's why I added back intt on deb. But I think ,It is not to be taken into FFS and FFO. Intt on deb will not affect FFS because this transaction affects only current a/c(current asset and current liab).The transaction which affect both a current a/c(current asset or current liab)and a non current a/c(non current asset or non current liab) ,causes a change in FFS.

(Guest)

In Funds from operations (adjusted profit &Loss a/c),only operating expenses are considered.That's why I added back intt on deb. But I think ,It is not to be taken into FFS and FFO. Intt on deb will not affect FFS because this transaction affects only current a/c(current asset and current liab).The transaction which affect both a current a/c(current asset or current liab)and a non current a/c(non current asset or non current liab) ,causes a change in FFS.

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