Cash Flow statement - Functional clarification

[Former Member]

Dear All,

Need a functional clarification on below cash flow statement;

Proceeds from sale of Fixed Assets - Fixed asset sold to customer, which is not realized (Not yet paid by the customer). Will that be part of cash flow statement of current period ?? (since it is not realized in our books)

Need a functional clarification required.

Regards,

Raja

[former_member225135]

Hi Anantha,

If you are using direct method to calculate cash flow, this should not be part of cash flow otherwise yes.

Regards,

Rahul

[former_member186338]

It depends on the country accounting principles... Please talk with client chief accountant.