Nikhil Ts (CA ,CS FINAL) (41 Points)
21 June 2010I Was of the Opinion that Bank OD Forms a part of Cash and Cash equivalents in the Cash Flow Statement,(CFS)just wanted to know how a Bank OD Sanctioned during the year should be shown in the CFS,IF it should be treated as a financing activity or not............????
Rahul Gupta
(Project Controller ACA MBA(Fin.))
(8014 Points)
Replied 21 June 2010
Bank Overdraft is normally provided for operating actvities. It should be a part of operating activities.
Also, it is not consideredf as cash and cash equivalent, rather it is shown under current liabilities under bank OD accounts.
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