Cash flow statement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2012 Advances given to subsidary by holding company is operating activity under working capital changes as increase in current asset, correct or not?

Guest

Guest (Expert)

12 May 2012 if its advances given for sale or services then its WC changes. if its in nature of unsec loans then its CF frm fin acts

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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12 May 2012 If the Advance is given in normal course of business then it is a part of operating activity otherwise investing activity.
It will not be financing activity.

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