Regarding cash flow

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.

In Cash Flow from Operating Activity

Increase in Accrued Income will reduce balance of Cash from Operating Activity and vice versa