While preparing Cash Flow statement, we add 'interest on debentures' to Calculate Cash flow from operating activities. But we don't do this while calculating Funds from operations in Fund Flow. Can anyone clarify why this is done? Thanks!
2 Replies
satish
(teaching)
(2046 Points)
Replied 22 December 2017
Cash flow statements
Cash from operating activities: while calculation Operating profit nefore working capital chages, we should add interest on debentures.
Cash from financing activities: it will show as out flow of cash
Funds flow statement:
Funds from operations: Interest on debentures to be add back to Net profit. i.e. sources of fund.
Under funds flow statement payment amount should shown as application of Fund.
Note: Calculation part for Operating profit nefore working capital changes under Cash flow and Funds from operations under funds flow is Similar.
Prachi Bansal
(3129 Points)
Replied 17 March 2021
Could you please tell me of what all comes under Cash flow from operations?
Recent Topics
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
Related Threads
CAclubindia
