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Non Cash Transactions

Non-Cash Transactions Investing and financing transactions that do not require the use of cash or cash-equivalents should be excluded from a cash flow statement. Such transactions should be disclosed elsewhere in the financial statements in a way that provides all the...

Deferred Taxes

Deferred Taxes There can be differences in the amount of taxes payable, determined on the basis of financial accounting vis-a-vis tax accounting. One such item which an cause this distortion relates to the treatment of depreciation. For instance, for income-tax...

Taxes on Income

Taxes on Income Taxes paid on income as well as tax refunds are usually classified as cash flows from operating activities, In the event of their specific indentification with investment or financing activities, the tax cash flow is classified as an investing or...

Dividends

Dividends While dividends paid are classified as financing activities, dividends received on investments constitute a part of investment activities. For the financial enterprises, dividends received form a pan of operating activities and dividends paid as a pan of...