Amazing General Reserve In Cash Flow Statement

Jayati Jawa Meritnation Expert added an answer on 24214 Dear Student When general reserve decreases it is to be subtracted from the current years profit in the operating activities for the preparation of Cash flow statement.

General reserve in cash flow statement. Particulars Amount ACash From Operating Activities Net profit as per Profit and Loss account Add. As an analytical tool the statement of cash flows. General reserve is a part of owner equity.

Therefore as per clause b of Para 20 of IAS 7 - Cash Flow statement in the cash flow from the operating activities all provisions and non cash items are adjusted to the net profit and loss. Statement statement of changes in equity or statement of recognised income and expense and cash flow statement and explanatory notes including a summary of significant accounting policies. Cash Flow from Operating Activities Net Profit as per Statement of Profit and Loss CY - PY.

12 February 2013 The creation of general reserve is non cash item and is created through provision. In this article well show you how the CFS is. Transfer to Reserves Interim dividend paid during the year Proposed dividend for the current year Provision for tax made during the year Extra ordinary items debited to profit and loss account if any Less.

The funds constituting the capital reserve account are not used to pay dividends repurchase shares or engage in other capital return programs. Tax refund Extraordinary items credited to profit and loss account if any Net Cash Before Tax and Extraordinary Items Adjustment for non cash. 3050 and increase in provision for doubtful debt Rs200 2.

In financial accounting a cash flow statement also known as statement of cash flows is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating investing and financing activities. It is just appropriation of profits. Is one of the three key financial statements that report the cash generated and spent during a specific period of time eg a month quarter or year.

FRS 1 prescribes certain minimum disclosures to be made on the face of the primary statements. Goodwill amortised was 7000. There is also a third important financial statement known as Cash flow statement which shows inflows and outflows of the cash and cash equivalents.