Cash flow statement
Raph Ael (57 Points)
17 August 2018
where will we show insurance claim received on loss of fixed assets due to fire
11 Replies
Piyush Shirodkar
(CA Final Student)
(1358 Points)
Replied 17 August 2018
cash flows from investing activities
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 17 August 2018
Income from Investing Activities
Raph Ael
(57 Points)
Replied 17 August 2018
but in institute's book it's shown as extraordinary item under operating activities
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 17 August 2018
If Insurance claim on Assets in fire then
Srivalli
(Student)
(200 Points)
Replied 17 August 2018
If it is insurance then it is shownunder investment activities , insurance claims is shown under extraordinary items
Piyush Shirodkar
(CA Final Student)
(1358 Points)
Replied 17 August 2018
Actually it's an extraordinary item, as loss of assets caused by fire won't be part of day to day business activity.
Hence it shall be treated as cash flows from operating activites.
Hence it shall be treated as cash flows from operating activites.
Raph Ael
(57 Points)
Replied 17 August 2018
but even as an extraordinary item why is it coming under operating wouldn't investing be more appropriate
Piyush Shirodkar
(CA Final Student)
(1358 Points)
Replied 17 August 2018
Go as per what AS 3 and ICAI says.
They are always correct.
As per my view both answers are correct.
But in exam only 1 answer accepted based what assumption you make.
Such assumption shall match with ICAI answer then only you will be rewarded marks. :)
They are always correct.
As per my view both answers are correct.
But in exam only 1 answer accepted based what assumption you make.
Such assumption shall match with ICAI answer then only you will be rewarded marks. :)
Shashank Srivastav
(40 Points)
Replied 18 August 2018
Insurance claims received against loss of stock or loss of profits are extraordinary
operating cash inflows for all enterprises.
Insurance claims received against loss of fixed assets are extraordinary investing
cash inflows for all enterprises.
These are the words from the study material.
operating cash inflows for all enterprises.
Insurance claims received against loss of fixed assets are extraordinary investing
cash inflows for all enterprises.
These are the words from the study material.
Prazu Shrestha
(36 Points)
Replied 20 August 2018
it's included in cash flow from operating activities
if you think it's neither investing nor financing such item shall be included in operating ..
if you think it's neither investing nor financing such item shall be included in operating ..
Recent Topics
- Download of list of eWay bill of inward supply
- GST Registration & ITC Eligibility
- Income Tax Act rollout schedule
- ITC ELIGIBLEITY
- Legal Services RCM
- Accounting for charitable religious institute
- GSTR -9 FY 23-24 related Query
- GSTR 9 ... table 9... value regards..
- Find the taxable amount from his salary according
- How to d in 44AD
Related Threads
Trending Online Classes
-
6 days Certification Course on GST Practical Return Filing Process
CA Pratibha Goyal16 December 2024
CAclubindia
