Issuance of Exposure Draft of revised AS 3

Last updated: 15 October 2008

In its endeavors of converging with IASs/IFRSs, the Institute of Chartered Accountants of India (ICAI) has issued an exposure draft of revised Accounting Standard (AS) 3, Statement of Cash Flows on the lines of corresponding IAS 7 for public comments. The last date of sending comments is November 10, 2008. The exposure draft of revised AS 3 contains more disclosure requirements as compared to the existing AS 3, Cash Flow Statements and contains specific treatment for various items, such as, bank overdrafts, cash flows from changes in interests in a subsidiary that do not result in a loss of control, etc. for which the existing AS 3 does not provide for any specific treatment. The draft also differs from IAS 7 in that it removes the alternative to classify the interest paid, interest and dividends received, and dividends paid as an item of operating activity, which is the position in the existing AS 3. It may be noted that in spite of the afore-mentioned differences with IAS 7, the standard would still be considered as converged as the IASB permits removal of alternatives.

The exposure draft can be downloaded from the link below

Exposure DRAFT AS 3

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