Asst. Manager- Internal audit
226 Points
Joined May 2008
Dear Firoz,
Accrued Income is classified under Current Assets therefore while preparing Cash Flow Statement it will be part of Change in Working Capital which is further grouped under Cash Flow from Operating Activity.
BUT if such Accrued Income is generated from some Investment Assets which is not operational activity of business than it is better to group such income under Cash flow from Investing activity.