Earlier year tax in cash flow statement
Ankush (Student) (1369 Points)
09 October 2019
How to show the same if we take profit before tax figure as starting point for cash flow?
4 Replies
Kapadia Pravin
(17259 Points)
Replied 10 October 2019
Show it as cash outgo on excess of provision made
sabyasachi mukherjee
(27574 Points)
Replied 10 October 2019
Cash flow statement.
shows the following:
1. cash flows from operating activities
2. from investment activities.
3. from financing activities.
1. pbit
add back
depreciation
goodwill
amortised.
interest paid on short term and long term borrowings
less
Income tax paid....
shows the following:
1. cash flows from operating activities
2. from investment activities.
3. from financing activities.
1. pbit
add back
depreciation
goodwill
amortised.
interest paid on short term and long term borrowings
less
Income tax paid....
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 10 October 2019
1. Cash flow statement will contain operating activity under which non-cash items that have already been added during the previous year now needed to be deducted because the same is paid during the year.
2. Simply the tax is paid during the year, so it must form part of your cash flow statement during the year.
Please correct me if the above solution has an alternative view.
SOHAN LAL
(Manger Accounts & Finance)
(363 Points)
Replied 19 May 2020
How to prepare Cash Flow Statement (Complete Practical Guide) Click on below link
https://youtu.be/2i_culGgO8o
https://youtu.be/2i_culGgO8o
Recent Topics
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
Related Threads
CAclubindia
