treatment of bank o/d in cash flow statements

i agree with amol sir

well,i am very confused because jindal sir told us to consider in cash and cash equivalents and kalra sir in financing activity..so what to do?please help me

Dear Vinayak,

You are right.......... but Ashish Kalra Sir has Prove of their saying......... when asking they will tell you about that and he will show you......... infact, treatment in IFRS is the same as Kalra Sir is saying.......

thnx..ya asish sir has proved by showing us exposure draft, Ifrs and even showed the revised AS3 in which anthing can be done....but what should i do in exam?one of my friends told that even sonu gupta sir told them to show in cash and cash equivalents whereas praveen sharma sir(another friend told me) has also showed in financing activity...i can't rely on jindal sir..so please advise

abhi iss pt par exposure draft hai

both are right logically

in my openion follow one & give note for other that u assumed abt bank o/d

from the above discussion, i want to explain differance between Bank OD and CC and -ve balance of bank deposit

In general -ve balance of current A/c,  student always say Bank overdraft. This is wrong opnion of the student. 

But in practical Bank Overdraft means loan taken from Bank for filling up the working capital gap it can be secured and unsecured mortgage by of any propery or any other fixed assets. which is reassessed on every year.

CC is loan taken from bank against stock and debtor and any other assets. In Both cases account run is run like other account and bank charge interest on -ve balance stand in account not on the sanction limit of account

so, i think Bank overdraft and cc is should be taken as financial activity and -ve balance as cash and cash equivalent

If my opnion is wrong. Pls rectify to me

Thanks

Sachin

CA Final Student

Dear Gaurav, if u r asking it from exam view point then always show O/d as cash and cash equivalents (negative cash) as institute follows the same. u can check the same in ur compiler where the answer was given according to abovementioned treatment.

Regards, CA Shakuntala Chhangani

agree with payal maam...

Do, one and shw note on the other.....

it a debateable point.............Bank OD shuld b part of financing activity.... coz it is a source of finance.... bt from cramming point of view its CASH and CASH equivalents coz almost accounting buks treat it so... if sometime later the author who used to treat it cash & cash equivalent ... treat it financing activity in new addition den teacher wuld treat it as financing activity... so use ur own mind..... coz CA is nt lyk a cbse xam whr u cram d method of answer n stick to dat method.... 

I want to know the details about Government Grants received for some fixed asset purchase  and  that amount was deducted from fixed asset purchase cost  

EX

     Mr. A purchase fixed at a cost of Rs.1000000 Government Grants 100000

The entry in the book fixed asset value 900000 (1000000-100000)

What is the activity involved for Government Grants

And what the amount in investment activity