CASH FLOW DOUBT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2010 WHAT IS THE TREATMENT FOR STOCK ADJUSTMENT?

WHEN SHARES ARE ISSUED AS CONSIDERATION FOR BUYING FIXED AND CURRENT ASSETS, WHATS THE TREATMENT??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 October 2010 Stock is a working capital change.

If shares issued other than cash then they will not appear in the cash flow at all.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2010 Thank u sir. but is it the case for current assets too? In one of the text book, stock purchased by issuing shares was recorded.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 October 2010 It is just a case of presentation. Since shares issued other than cash then the same should not come in cash flow in my view as it is a non cash item.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2010 Thanks a lot again sir.. So treating as a non cash item we can totally omit...

What if it was preparation of funds flow sir? any change?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 October 2010 It will come in fund flow

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Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2010 THANKS A LOT SIR