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- An entity presents its cash flows from operating, investing and financing activities in a fashion which is most acceptable to its enterprise.
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In addition, the disclosure requirement in paragraph 44A additionally applies to adjustments in monetary belongings (for instance, property that hedge liabilities arising from financing activities) if cash flows from these financial assets were, or future money flows might be, included in money flows from financing actions. (a) the acquisition of assets both by assuming immediately related liabilities or via a finance lease; (b) the acquisition of an entity by the use of an equity problem; and (c) the conversion of debt to fairness. The exclusion of non-cash transactions from the assertion of cash flows is consistent with the objective of a statement of cash flows as these things don’t contain cash flows in the current period. 40A An funding entity, as defined in Ind AS 110, Consolidated Financial Statements, need not apply paragraphs 40(c) or 40(d) to an funding in a subsidiary that’s required to be measured at fair value by way of profit or loss.
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