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- Reporting cash flows from operating activities 18.
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The direct technique of getting ready the CFS underneath Ind AS 7 involves presenting the precise money inflows and money outflows from working actions. Money receipts from rents and subsequent gross sales of such assets are also cash flows from working activities (no such particular guidance beneath AS 3). Money payments to fabricate or acquire belongings held for rental to others and subsequently held for sale are cash flows from working activities. Dividends paid shall all the time be categorized as money flows from financing activities. (Under AS – three, the same just isn’t handled as a part of money and money equivalents). Nevertheless, the place bank overdrafts which are repayable on demand are included in money and money equivalents.
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