Preliminary expenses written off where in cash flow statement operating activities coloumn or financing activities coloumn please tell me
vineeth
(Sr Assocoate)
(35 Points)
Replied 30 July 2010
what is the difference between direct method and indirect method for cash flow statement please give two formats like one is here and another two is 1.investing activities 2.financing activities
| Cash Flow from Operating Activities (two formats) | |||
| Direct Method | Indirect Method | ||
| Cash received from customers | Net Income before Taxes and Extra Ordinary Items | ||
| Less:Cash paid to suppliers | Adjustments to reconcile net income to net cash provided | ||
| Less: Cash paid to employees | by operating activities: | ||
| -Depreciation | |||
| Other cash operating expenditures | -Loss or Profit from Sale of Assets | ||
| Changes in other accounts | |||
| Net cash provided by operating | affecting operations: | ||
| activities | Less:Increase in Current Assets | ||
| Add: Decrease in Current Assets | |||
| Less:Decrease in Current Liabilities | |||
| Add: Payment Of Income Tax | |||
| Add: Any other Extra ordinary Items | |||
| Net cash provided by operating | |||
| activities | |||
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 30 July 2010
no format for investing and Financing activities
Prel exp written off being a non cash transaction is added to net profit in indirect method
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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