- This topic has 1 reply, 2 voices, and was last updated 13 years ago by
.
- Posts
These drive me crazy. I would like to know when you use the cost and when you use the NBV figures (if both are given) for calculating cash flows with non current assets. Which b/f and c/f do you take?
Is there a hard and fast rule. I seem to be guessing between the two at the moment and the results come out very different.
Cheers
Hello buddy,
If cost and NBV is given. Just draw a rough “T” account and enter figure of brought foward and carry forward.
Next step would be to plot the cost in the “T” account. if “T” account tally, it means we dont have to worry about anything.
However if there is a balance. It would relate to cash outflow i.e. purchase of asset or cash inflow i.e. sale of asset.
Once you are happy with “T” account. you can easliy pick the number to be pulled to cash flow statement.
Hope it helps.
Regards
Raj
- You must be logged in to reply to this topic.