How will you deal with an increase in the balance of "Securities Premium Reserve" while preparing a cash flow statement?

Cash Flow from Investing Activities Cash Flow from Financing Activities Cash Flow from Operating Activities No cash flow

Cash Flow from Financing Activities

Financing activities relate to long-term funds or capital of an enterprise, e.g., cash proceeds from issue of equity shares, debentures, raising long-term bank loans, repayment of bank loan, etc. As per AS-3, financing activities are activities that result in changes in the size and composition of the owners’ capital (including preference share capital in case of a company) and borrowings of the enterprise. Premium is related to issue of shares and it will fall under financing activity.