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The direct method of preparing the CFS under Ind AS 7 involves presenting the precise cash inflows and money outflows from working actions. Money receipts from rents and subsequent sales of such assets are also cash flows from working activities (no such particular steering beneath AS 3). Cash funds to fabricate or acquire property held for rental to others and subsequently held on the market are money flows from operating activities. Dividends paid shall all the time be categorised as money flows from financing actions. (Under AS – 3, the identical isn’t treated as a part of cash and cash equivalents). Nevertheless, the place financial institution overdrafts which are repayable on demand are included in cash and cash equivalents.
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