Cash Flow Statement as per

Accounting Standard 3
OperatingActivities

Cash flows from operating activities predominantly result from the main revenue-generating
activities of an enterprise.

Cash received from the sale of goods and services

Cash received in form of fees, royalties, commissions, and various other revenue forms
Cash paid to a supplier of goods and services
Cash Payment made to employees
Investing Activities
Cash flows from investing activities represent the acquisition and disposal of long-term assets &
investments not including cash equivalents.
Cash paid for acquiring PPE (includes R&D Expenditures)
Cash received from the sale of PPE (including intangibles)
Cash paid for acquiring shares, warrants, or debt instruments of other companies and interests in JVs
Cash received from the sale of shares, warrants, or debt instruments of other companies and interests in
JVs
Cash & advances made to other parties
Financing Activities
Financing activities are those which brings changes in composition and size of owner’s capital
and borrowings of an enterprise.
Cash proceeds from issuing shares or other similar securities
Cash received from issuing loans, debentures, bonds, notes, and other short-term or long-term
borrowings
Cash repaid on borrowings
 Discuss the treatment of following
entries in Cash Flow Statements:
1. Loans and Advances are given to:
a) Suppliers
b) Employees
c) To its subsidiary companies
2. Investment made in the subsidiary company
3. Dividend Paid
4. TDS on interest income earned on investments made
5. Income tax paid
6. Bank loan repaid
7. Proceeds from the issue of Corporate Bonds