23 November 2009
It is strongly recommended that consolidated cash flow should be prepared from consolidated balance sheet.
The reason being that there are many adjustment entries passed while preparing consolidated financials and this results in change of balances. Hence take consolidated balance sheet.
24 November 2009
Hi Anandraj, Consolidated cash Flow Statement is prepared from consolidated financial statements in case of a listed co (mandatory). An unlisted parent co. which does not prepare its own cash flow statement but presents consolidated accounts voluntarily is not required to present consolidated CFS. however, if its turnover exceeds Rs. 50 crores and it choses to prepare consolidated A/c then it is mandatory for such unlisted co. to prepare consolidated CFS. Regards, CA Shakuntala Chhangani
CAclubindia
