ICAI’s Exposure Draft of AS 7- Statement of Cash Flows for Comments by 21 Jan. 2016
ICAI has issued an Exposure Draft of the updated Accounting Standard (AS) 7 on Statement of Cash Flows, for public comments. The ICAI has invited comments on any aspect of this Exposure Draft. Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.
The ICAI has requested to focus the comments particularly on the questions set out below:
“In order to avoid complexity for smaller entities, the Board proposes to amend paragraph 14 of this standard by deleting the requirement of classifying the cash payments to manufacture or acquire assets held for rental to others and subsequently held for sale and cash receipts from rents and subsequent sales of such assets as cash flows from operating activities. This requirement is deleted because it was felt that the application of the same would be too onerous for entities not applying Ind ASs. The said requirement is also proposed to be deleted from updated AS 16, Property, Plant and Equipments.
Do you agree with the proposed amendments? If not, why and what alternative do you propose?”
Comments can be submitted not later than January 21, 2016.