36 Taxes on income arise on transactions that ind win7 give rise to cash flows which might be categorised as operating, investing or financing activities in an announcement of money flows. Taxes on revenue 35 Money flows arising from taxes on earnings shall be separately disclosed and shall be categorized as cash flows from operating actions unless they can be particularly identified with financing and investing actions. 32 The whole quantity of curiosity paid throughout a period is disclosed within the assertion of cash flows whether or not it has been recognised as an expense in profit or loss or capitalised in accordance with Ind AS 23, Borrowing Prices.

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In addition, the disclosure requirement in paragraph 44A also applies to modifications in financial property (for instance, property that hedge liabilities arising from financing activities) if cash flows from these monetary property were, or future money flows shall be, included in cash flows from financing activities. (a) the acquisition of assets either by assuming directly related liabilities or by the use of a finance lease; (b) the acquisition of an entity via an equity issue; and (c) the conversion of debt to equity. The exclusion of non-cash transactions from the statement of cash flows is according to the target of a statement of money flows as these things do not involve cash flows within the current interval. 40A An investment entity, as outlined in Ind AS 110, Consolidated Monetary Statements, needn’t apply paragraphs 40(c) or 40(d) to an investment in a subsidiary that’s required to be measured at honest worth by way of profit or loss.

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