Calculation of cash flows from operating activities

Particulars Amount Net Profit as per Statement of Profit and Loss or Difference between the closing and opening balance of Statement of Profit and Loss. xxx Add: Transfer to Reserves xxx Deffered Tax Liabilities (Net) xxx Proposed Dividend (Current Year) xxx Interim Dividend paid during the Year xxx Provision for Tax made during the year xxx Extraordinary Items, if any, debited to Statement of Profit and Loss xxx Less: Deferred Tax Assets(Net) (xxx) Tax Refund if any (xxx) Extraordinary Items, if any, credited to Statement of Profit Loss (xxx) Net Profit before…

Format of Cash Flow Statement (Indirect Method)

CASH FLOW STATEMENT for the year ended ….. Particulars  Amount (A)Cash From Operating Activities Net profit as per Profit and Loss account Add: Transfer to Reserves Interim dividend paid during the year Proposed dividend for the current year Provision for tax made during the year Extra ordinary items debited to profit and loss account (if any) Less: Tax refund Extraordinary items credited to profit and loss account (if any)   =Net Cash Before Tax and Extraordinary Items   Adjustment for non cash and non operating items: Add: Depreciation Goodwill, patents, trademarks etc…

Classification of Cash Flows as per Accounting Standard-3 (Revised)

Classification of Cash Flows as per Accounting Standard-3 (Revised) According to the Accounting Standards-3 (Revised), the cash flows can be classified into three types. 1. Cash flows from Operating Activities 2. Cash flows form Investing Activities 3. Cash flows from Financing Activities 1. Cash From Operating Activities The principal revenue producing activities of a business are called the operating activities of that enterprise. These are the main activities in which it deals. Cash flows arising from these activities are called the cash flows from operating activities. Cash flows from operating…