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An entity shall report individually major classes of gross cash receipts and gross money payments arising from investing and financing activities, except to the extent that cash flows described in paragraphs 22 and 24 are reported on a net basis. Reporting cash flows from investing and financing activities 21. Alternatively, the web cash flow from working activities may be presented underneath the indirect technique by exhibiting the revenues and expenses disclosed in the assertion of profit and loss and the modifications during the interval in inventories and operating receivables and payables. (i) modifications through the interval in inventories and operating receivables and payables; (ii) different non-cash gadgets; and (iii) other objects for which the money effects are investing or financing money flows. The direct technique offers information which may be helpful in estimating future money flows and which isn’t out there beneath the indirect technique. Equally, money advances and loans made by monetary institutions are often classified as operating activities since they relate to the principle revenueproducing activity of that entity.
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