Cash flow statement

AS 812 views 1 replies

Though AS 3 says both direct and indirect method can be used for cash flow preparation, why do companies prepare cash flow statements only using Indirect method????

Replies (1)

as per AS 3 indirect method is compulsory for non smc and as 3 is mandatory for non smc, whereas smc have choice to prepare CFS, as its optional for them. Therefore choice for direct or indirect method is for smc


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