Cash Flow Statement Format is prepared by taking operating, investing, and financing activities into consideration. All the transactions and information related to these three activities are summed up to prepare a cash flow statement format. The cash flow statement is a financial statement that provides information about the cash inflows and outflows of a business during a specific period.
One can prepare a cash flow statement if the two comparative balance sheets of a company are given. The transactions of a cash flow statement are categorised into three activities; namely, Cash flow from Operating Activities, Cash flow from Investing Activities, and Cash flow from Financing Activities. The Institute of Chartered Accountants in India has issued Accounting Standard AS - 3 revised for the preparation of cash flow statements. Besides, with the introduction of the Companies Act 2013, the preparation of a Cash Flow Statement is now mandatory for every type of company except OPC (One Person Company) [Section 2(40)].
Cash Flow from Three Different Activities
1. Format of Cash Flow from Operating Activities
* Net profit before taxation and extraordinary items is calculated as:
2. Format of Cash Flow from Investing Activities
3. Format of Cash Flow from Financing Activities
