Cash Flow Notes5

Study Material & Notes for the Chapter 12

CASH FLOW STATEMENT

IV.  CASH FLOW FROM FINANCING ACTIVITIES

• As per AS-3, financing activities are activities that result in changes in the size and composition of the owners’ capital (equity/preference shares) and borrowings of the enterprise.
• Financing activities relate to long-term funds or capital of an enterprise, e.g., cash proceeds from issue of equity shares, debentures, raising long-term bank loans, repayment of bank loan, etc
• Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds ( both capital and borrowings ) to the enterprise.

Presentation in the Cash Flow Statement

SN	Particulars	Amount
	Proceeds from Issue of Shares and Debentures	xxxxx
	Proceeds from Other Long-term Borrowings	xxxxx
	Increase/Decrease in Bank Overdraft and Cash Credit	xxxxx
	Payment of Final Dividend (on Equity and Preference Share Capital)	xxxxx
	Payment of Interim Dividend	xxxxx
	Payment of Interest on Debentures and Loans (Short-term and Long-term)	xxxxx
	Repayment of Loans	xxxxx
	Redemption of Debentures/Preference Shares	xxxxx
	Payment of Share Issue Expenses or Underwriting Commission	xxxxx
	Payment for Buy-back of Shares as Extraordinary Activity	xxxxx
	Cash Flow from (or Used in) Investing Activities	xxxxx
IV	Net Increase/Decrease in Cash and Cash Equivalents (I+ II+ III)	xxxxx
V	Add: Cash and Cash Equivalents in the beginning of the year
	Cash on Hand	xxxxx
	Cash at Bank	xxxxx
	Short-term Deposits	xxxxx
	Current Investments	xxxxx
	Marketable Securities	xxxxx
	Add: Cash and Cash Equivalents in the beginning of the year
	Cash on Hand	xxxxx
	Cash at Bank	xxxxx
	Short-term Deposits	xxxxx
	Current Investments	xxxxx
	Marketable Securities	xxxxx
	Short-term Deposits	xxxxx