Practicing Success
If debentures are converted into equity shares, it is a/an..................... |
Inflow of cash No flow of cash Outflow of cash Cash & Cash equivalents |
No flow of cash |
As per AS-3, investing and financing transactions that do not require the use of cash or cash equivalents should be excluded from a cash flow statement. Examples of such transactions are – acquisition of machinery by issue of equity shares or redemption of debentures by issue of equity shares. Such transactions should be disclosed elsewhere in the financial statements in a way that provide all the relevant information about these investing and financing activities. |