Hi,
abc company payables:
commission 2000(2020) 5000(2019)
interest 4000(2020) 2000(2019)
wages 10000(2020) 9000(2019)
other expenses 20000(2020) 30000(2019)
gross payables 36000(2020) 46000(2019)
now when you calculate the working capital changes of inventory, receivables & payables, the above items differences are calculated separately and grossed up or just the difference between closing balance of gross payables between 2019 & 2020 included?
AS, IndAS or. IFRS doesn’t answer that. It will be nice if each item is accounted for separately in Payables even though the difference is the same. Any rationale behind this?
CAclubindia
