02 May 2020
we will take non current items only when cash and cash equivalent got effected by such transaction. e.g. investment sold and receipt of which credited in bank then it would form part in investing activities and profit or loss form part of operating activities. i hope you cleared
02 May 2020
Dear, My question is why in movement in working capital (increase -decrease of current asset and current liability) we are taking difference of non current item also.
Since working capital changes is purely based on current asset so only current item should come
02 May 2020
i have never seen such practice that while calculating changes in working capital non current assets/liabilities taken into consideration might be there is a mistake.
08 May 2020
Only cash inward and outward taken into account for preparing cash flow statement. It is not in anyway affected by Non Cash Items. Non Cash items are taken into Fund Flow Statement Only.
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