Cash Flow Statement Page 8
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30MODULE - 6A
Cash Flow Statement
Analysis of Financial Statements
F. Adjusted extraordinary items (+/–)/Receipt/payment
xxx
G. Net cash flow from (or used in) operating activities
xxx
(ii) Cash flow from investing activities (calculation same as
xxx
under indirect method)
(iii) Cash flow from financing activities
xxx
Notes
(Calculation same as under indirect method)
(iv) Net increase/decrease in cash and cash equivalents (i + ii + iii)
xxx
(v) Add cash and cash equivalent in the beginning of the year
xxx
(same as under indirect method)
(vi) Less cash under cash equivalent in the end of the year
xxx
xxx
Some facts about cash flow statement :
(i)
Only listed companies are required to prepare and present Cash
flow statement.
(ii)
The Accounting period for the Cash Flow Statement is the same
for which Profit and Loss Account and Balance Sheet are prepared.
(iii) Cash flow items are as (a) Cash flow from operating activities :(b)
Cash flow from investing activities (c) Cash flow from financing
activities.
(iv) Operating activities include revenue producing activities which are
not investing and financing activities.
(v)
There are two methods of calculating cash flow from operating
activities namely Direct method and Indirect method. SEBI
(Securities Exchange Board of India) Guidelines recommend for
only direct method.
(vi) Extra ordinary Items : The Cash flow associated with extra
ordinary items should be classified as arising from operating,
investing financing activities. For example, the amount received
from Insurance Company on account of Loss of Stock or loss from
earthquake should be reported as cash flow from operating
activities.
INTEXT QUESTIONS 30.2
Fill in the blanks with appropriate word/words.
(i) Only ........................ companies prepare cash flow statement.
(ii) There are two methods for calculating cash flow from operations i.e.
(i) Direct method (ii) ........................ method.
69
ACCOUNTANCY
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial