Effect of bonus shares on cash flow statement
This query is : Resolved
23 October 2012
Balancesheet position was as follows
Share capital in 2005 was 500000 Rs,in 2006 600000 Rs
It has mentioned in adjustment that bonus shares issued.
will cash flow from bonus shares efect in cash flow statement?
Share capital in 2005 was 500000 Rs,in 2006 600000 Rs
It has mentioned in adjustment that bonus shares issued.
will cash flow from bonus shares efect in cash flow statement?
23 October 2012
case I:
If the Net profit(i.e. before appropriations) has been taken in cash from operating activities, then no treatment of bonus.
Case II:
If the amount of P&L is taken from B/s(i.e. difference of opening and closing P&L/ reserves), then the mount of bonus issued(i.e. Rs. 1,00,000) shall be added back while computing Cash flow from operating activities.
If the Net profit(i.e. before appropriations) has been taken in cash from operating activities, then no treatment of bonus.
Case II:
If the amount of P&L is taken from B/s(i.e. difference of opening and closing P&L/ reserves), then the mount of bonus issued(i.e. Rs. 1,00,000) shall be added back while computing Cash flow from operating activities.
23 October 2012
thank u very much
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