This is the case whatever the nature of the entity’s activities and no matter whether money can be seen because the product of the entity, as will be the case with a financial establishment. Customers of an entity’s financial statements are interested in how the entity generates and makes use of cash and cash equivalents. An entity shall prepare a press release of money flows in accordance with the requirements of https://ind-win7.com/ this Normal and shall present it as an integral a part of its financial statements for each period for which monetary statements are offered. Ind AS 7 prescribes the requirements for preparation of statement of money flows which shall be offered as an integral a part of the financial statements.
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Cash flows arising from taxes shall be separately disclosed and categorized as operating activities unless specifically identified with financing and investing activities. Interest paid is disclosed in the assertion of cash flows whether or not it has been recognised as an expense in profit or loss or capitalised as per Ind AS 23. However, the place bank overdrafts which are repayable on demand are included in cash and cash equivalents. Cash flows arising from taxes on income shall be individually disclosed and shall be classified as a half of working actions until they can be separately recognized with investing and financing activities.