Out Of This World Cash Flow Statement Is Prepared As Per Accounting Standard
AS 3 helps in providing information about the cash flow transactions and cash analysis in the spending at various items.
Cash flow statement is prepared as per accounting standard. Above Cash Flow Statement is prepared as per Accounting Standard 3 Revised. The information about daily inflow and outflow of cash and historic changes in the same is very important for every business. Cash Flow Statements AS 3.
Accounting Standard 3 deals with cash flow statement. Cash and cash equivalents. As cash flow activities in the statement of cash flows.
So companies which will be required to prepare financial statements as per Ind AS will be required to prepare statement of cash flows as per Ind AS 7. A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement should report cash flows during the period classified by operating investing and financing activities.
This statement classifies cash flows during the period from operating investing and financing activities. Such information is disclosed in the cash flow statement indicating cash flows from operating investing and financing activities during an accounting period. Cash and Cash Equivalents include Cash Bank Short Term Deposits Current Investment and marketable securities.
The Statement of Cash Flows also referred to as the cash flow statement is one of the three key financial statements that report the cash generated and spent during a specific period of time eg a month quarter or year. The AS 3 is not applicable to small and Medium Scale industries. Statement of cash flows is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating investing and financing activities.
Financial Statements are defined in Companies Act 2013 Section 2 40 and includes Cash Flow Statement prepared in accordance with Accounting Standard- 3 AS-3- Cash Flow Statement. As per this accounting standard cash flows are showed under the following 3 heads. 2 Purchase of investment in Mutual Fund of H 6978888 crore previous year H 4489657 crore and sale of.