Presentation of Statement of Cash Flows - Ind AS - Indian Accounting Standards - Companies Law

Presentation of Statement of Cash Flows The statement of cash flows shall report cash flows during the period classified by operating, investing and financing activities. An entity presents its cash flows from operating, investing and financing activities in a manner which is most appropriate to its business. Classification by activity provides information that allows users to assess the impact of those activities on the financial position of the entity and the amount of its cash and cash equivalents. This information may also be used to evaluate the relationships among those activities. A single transaction may include cash flows that are classified differently. For example, when the instalment paid in respect of an item of Property, Plant and Equipment acquired on deferred payment basis includes interest, the interest element is classified under financing activities and the loan element is classified under investing activities. Classification of each activities - Operating Activities To forecast future cash fkows from its regular operations; Investment Activities Helps the user to setimate the future operating cash flows because of the current year investing activities and other income from the investment activities; Financing Activities It is useful to predict future claims by providers of funds by way of dividend, interest, etc. Statement of Cash Flow Particulars ₹ Cash flows from Operating activities Cash flows from Investing activities Cash flows from Financing activities XXX XXX XXX Net Cash Flows Add: Opening cash and cash equivalents XXX XXX Closing Cash and Cash equivalents XXX