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AS three requires separate disclosure of money flows from operating, investing and financing actions for extraordinary items. Curiosity paid is disclosed in the statement of cash flows whether or not it has been recognised as an expense in profit or loss or capitalised as per Ind AS 23. In the case of a monetary establishment, Cash flows arising from curiosity paid and interest & dividends acquired should be classified as money flows from operating actions. Many investing and financing actions do not impact cash flows though they do have an effect on the capital and asset structure of an entity. The cash move assertion helps users to grasp the variations between internet income and money flow from working activities, in addition to to establish the money flows from investing and financing activities. (d) the amount of the money flows arising from the operating, investing and financing activities of each reportable phase (see Ind AS 108, Working Segments).
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- Unrealised gains/losses on overseas currency balances do not represent “cash flow” however should be disclosed separately as reconciling gadgets between opening/closing balances per Para 28.
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