02 May 2011
How to treat interest payable/ receivable given in the b/s for 2 years. Do we show it under working capital changes or interest received separately ( actual cash) under investing activities?
02 May 2011
As per AS 3 Interest Received. from investment should be shown under investing activity. For short term investment classified as cash equivalents should be considered as cash flow from operation activity
02 May 2011
As per AS 3 Interest paid: -->on loans/debts is financing activity. -->on working capital loan and any other loan taken to finance operating activity is in operating activity.
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