Cash Flow Notes5

Study Material & Notes for the Chapter 12

CASH FLOW STATEMENT

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