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How to treat Stock Adj. in Cash flow statement?

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(Querist)
23 July 2010 How is stock adjustment profit/loss treated in Cash Flow Statement (both direct & indirect)?

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Shudhanshu Agrawal

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Shudhanshu Agrawal (Expert)
26 July 2010 Stock Adjustment A/c is a non cash A/c. If it is debited to P & L A/c then it will reduce the profit so add back this in operating activities and vice versa.

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