Accounting Standard AS 3 Cash Flow Statements Revised PDF


Accounting Standard AS 3 – Cash Flow Statements PDF Download:- The Cash Flow Statements has been issued by the Institute of Chartered Accountants of India ICAI. The Accounting Standard AS 3 (Cash Flow Statement) came into effect from 1st April 1997. The AS 3 is not applicable to small and Medium Scale industries. AS 3 helps in providing information about the cash flow transactions and cash analysis in the spending on various items. Nowadays cash is an important term to run any business. So aspirants’ analysis of Cash flow statements is mandatory for the Large Scale Industries in order to avoid unnecessary investments and cash transactions.

Accounting Standard 3 PDF Download For Cash Receipts from Royalties, Fees, Commissions, and Other Revenues is Covered under the AS 3 Cash Flow Statement ICAI. Candidates can also download the Accounting Standards 3 PPT ( PowerPoint Presentations). Better Information about the AS 3 Revised Schedule can be analyzed.

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Accounting Standard AS 3 Cash Flow Statements

A cash flow statement is used in conjunction with the other Financial Statements. The Cash Flow Statement (AS 3) provides information about the Net Assets of an Enterprise its Financial Structure and Its Ability to Affect the Amounts and timing of Cash Flows. Cash Flow Statements compare the Present and Future cash flow differences. The Historical Cash Flow Statements help in the Accuracy of Past Assessments of Future Cash Flows in Examining the relationship between profitability and net cash flow and the impact of changing prices.

Accounting Standard AS 3 – Cash Flow Statements are categorized into 3 types

The Cash Flow Statements of AS 3 are broadly classified into three types. Below we have given a brief description of the Accounting Standard AS 3 Cash Flow Statements.

  • Cash Flows From Operating Activities.
  • Cash Flows From Investing Activities.
  • Cash Flows From Financing Activities.

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Cash From Operating Activities

A revenue flow from the daily activities is called the operating activities of the Enterprises. Cash Flows from the Operating activities are the main source of revenue for the Business Concern. Here we provide a brief explanation about the Cash Flow Statements related to Operating Activities.

  • Cash received from the sale of the Commodities.
  • Cash received from providing services.
  • Cash Paid For Purchase of Raw Materials.
  • Cash received from Commission, Royalties, Funds, ..etc.
  • Payment of company Expenses like wages, salaries, Commission .etc.
  • payment of Refund of Tax.

Cash From Investing Activities

Accounting Standard AS 3 Cash Flow Statements is played a crucial role in Investing Activities. In Simple words, Cash Flow From Investing Activities means some of the money invested as long-term Investments for the Purchase of Assets is known as Investing Activities. Some of the companies also invest out of the business for-profit motive is also treated as Cash Flow From Investing Activities.

  • Cash Paid for purchase of Machinery.
  • Cash Paid For purchase of Investment.
  • Cash received on sale of the Assets.
  • Cash received on sale of the Investments.

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Cash Flow From Financial Activities

AS 3 Cash Flow Statements related to the Financing Activities help in analyzing the Cash Transactions. The Cash Flow Financing Activities for arranging of capital and other sources of Business. Below we updated Cash Flow Statements Financial Activities detailed information with examples.

  • Cash Proceeds for the issue of Shares or Debentures and Other Debt Instruments.
  • Cash Paid Redemption of Debentures.
  • Cash Paid for buyback of shares.
  • Profits used for Payment of Dividend on Shares and Interest to Debenture Holders and Other Long Term debts.


Presentation of a Cash Flow Statements AS 3

Accosting Standard As 3 Cash Flow Statements is present during the period classified by the three activities. Every enterprise presents the Cash Flows Statements from Operating, Investing & Financing Activities in a systematic manner. Classification of the Cash Flow Activities informs the assessment to analyze the Cash and Cash Equivalents transactions.

AS 3 Applicability Cash Flow Statements

Accounting Standards 3 applicability to Large Scale Industries. Small and Medium Scale Industries will be an are ignored or not mandatory for the preparation of the Cash Flow Statements. Applicability of Accounting Standards to Companies, SMC, …etc. is checked through the Accounting Standards Applicability Table. Here we also provide the Applicability of Accounting standards to Non-Corporate Entities.

Here we explained some of the frequently asked questions by us for a better understanding of the Cash Flow Statements.

What is meant by Cash?

  • Cash Comprises the Cash on hand and Demand Deposits with banks and Other Financial Institutions for the present liquidations.

What is Mean by Cash Equivalents?

  • Cash Equivalents means any short-term investments which can be easily converted into cash is called Cash Equivalents.

What are Cash Flows?

  • Simply words the cash Inflow and Outflow for Cash and Cash Equivalent Transactions are provided.

Reporting Cash Flow Statements From Operating, Investing & Financing Activities

The Reporting Cash Flows system is based on the two Methods. They are

  • Direct Method Cash Flow Statements Reporting.
  • Indirect Method Cash Flow Statements Reporting.

Direct Method:- The Cash Flow Statements for Direct Method are gross Cash Receipts and Gross Cash Payments will be Disclosed. This method is very easy to calculate the Cash Flow Statements.

Indirect Method:- The Direct Method of the Cash Flow Statements helps in Net Profit or Loss analysis for non-cash Nature or accruals of Past and Future Operating Cash Payments and Receipts. The Cash Flow Statements Income & Expenditure is related to the investing Point of View.

Foreign Currency Cash Flows

Some of the MNC Companies deal with Foreign Currency for reporting Currency transactions. In order to avoid the Currency accuracy, we have prepared the A rate approximates on to date of the Cash Amount is considered as a Cash Flow Statements reporting. The Changes in the Cash Rates and Future amounts should be treated on the date of the Currency rate and reconciliations of the Changes in the Cash and Cash Equivalents are done on the day of the Exchange Rate for recording in the Cash Flow statements.

Interest and Dividends

Cash Flows from Interest and Dividends are fluctuated as per the Payable interest and Out of Profits. The main casual question arises in the Cash Flow Statements For Interest Paid and Dividends Paid for Financing Activities and Financing Resources.

Candidates can also download the Accounting Standards AS 3 Cash Flow Statements PDF Format. Here better understanding and awareness of the cash flow statements with problems PDF download online For Free. we updated some of the AS 3 Cash Flow Statement Problems along with solutions in PDF. Students can download all the Accounting Standards AS 3 Cash Flow Statements by just clicking the link given below.


AS 3 Cash Flow Statement PDF download Click Here
Accounting Standards AS 3 Cash Flow Statements By ICAI PDF Download Click Here

Here we provide all the Indian Accounting Standards information. Aspirants if any doubt about any accounting Standards of Ind issued by ICAI just clicks the link given below.

Accounting Standards – ICAI

S.No. Name of the Accounting Standards AS Details
1 AS 1 Disclosure of Accounting Policies Check Here
2 AS 2 Valuation of Inventories Check Here
3 AS 3 Cash Flow Statements Check  Here
4 AS 4 Contingencies and Events Occurring  After Balance Sheet Dates Check Here
5 AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies Check Here
6 AS 6
7 AS 7 Construction Contracts Check Here
8 AS 8
9 AS 9 Revenue Recognition Check Here
10 AS 10 Property, Plant and Equipment Check Here
11 AS 11 The Effects of Changes in Foreign Exchange Rates Check Here
12 AS 12 Government Grants Check Here
13 AS 13 Accounting For Investments Check Here
14 AS 14 Accounting For Amalgamations Check Here
15 AS 15 Employee Benefits Check Here
16 AS 16 Borrowing Costs Check Here
17 AS 17 Segment Reporting Check Here
18 AS 18 Related to Party Disclosures Check Here
19 AS 19 Leases Check Here
20 AS 20 Earnings Per Share Check Here
21 AS 21 Consolidated Financial Statements Check Here
22 AS 22 Accounting For Taxes on Income Check Here
23 AS 23 Accounting For Investments in Associates Check Here
24 AS 24 Discontinuing Operations Check Here
25 AS 25 Interim Financial Reporting Check Here
26 AS 26 Intangible Assets Check Here
27 AS 27 Financial Reporting of Interests in Joint Ventures Check Here
28 AS 28 Impairment of Assets Check Here
29 AS 29 Provisions, Contingent Liabilities, and Contingent Assets Check Here



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