Question

How are the various activities classified (as per AS-3 revised) while preparing cash flow statement?

Answer 1

As per the Revised Accounting Standard 3 (AS-3), preparation of Cash Flow Statement for each period is mandatory. AS-3 also specifies the classification of all inflows and outflows basically under the following heads: 

• Cash Flow from Operating Activities 

• Cash Flow from Investing Activities 

• Cash Flow from Financing Activities