Sb Help me by clearing my query abt Cash Flow Statement

This query is : Resolved

s.lohani (Querist)
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20 November 2007 In “Indirect Method” of preparing the Cash Flow Statement in “operating expenses” segment, why do we substract the following:

a)Gain in Sale of Land\Fixed asset
b)Amortization of premium

KAAPIL

KAAPIL (Expert)
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20 November 2007 Cash Flow is as per AS 3. There are three activities
a. Operating Activities
b. Financing Activities
c. Investing Activities
Hence, whatever we account in whichever head is to be classified. Your question indicates the items that do not qualify as operating activities hence they are deducted.

KAAPIL

KAAPIL (Expert)
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01 January 2008 I hope you are doing well. Good Luck.

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