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BRILLIANT’S Cash Flow Statement 91

method for presenting cash flow statements AnZr ñdoÀN>m go AS-3 _| Xr JB© S>m`aoŠQ> AWdm BZS>m`aoŠQ>
under AS-3. _oWS> _| go {H$gr ^r _oWS> H$mo AnZm gH$Vr h¢Ÿ&
Objectives CÔoí`
Cash flow statement of an enterprise {H$gr B§Q>aàmBO Ho$ \$m`ZopÝe`b ñQ>oQ>_|Q>²g Ho$
provides important information to the users Cn`moJH$Vm© H$mo H¡$e âbmo ñQ>oQ>_|Q> H$s ghm`Vm go
of financial statements. It is also useful as a
base to assess the ability of the enterprise to _hÎdnyU© gyMZmE§ CncãY hmoVr h¢Ÿ& BZ gyMZmAm| Ho$ AmYma
generate cash and cash equivalents and the na dh Cg B§Q>aàmBO Ho$ H¡$e Ed§ H¡$e BpŠdd¡b|Q> (Cash
needs of enterprise to utilize those cash flows. & Cash Equivalents) Ho$ òmoV Ed§ CZHo$ à`moJ Ho$
The statement deals with the provision of gå~ÝY _| {dñV¥V OmZH$mar àmßV H$a gH$Vo h¢Ÿ& `h
information about the historical changes in ñQ>oQ>_|Q> {H$gr B§Q>aàmBO _| JV Ad{Y _| H¡$e Ed§ H¡$e
cash and cash equivalents of an enterprise by
means of a cash flow statement which BpŠddob|Q> _| hmoZo dmco n[adV©Zm| Ho$ ~mao _| gyMZm àXmZ
classifies cash flow during the period from H$aVm h¡ {OgHo$ AÝVJ©V Am°nao{Q>§J, BÝdopñQ>¨J Ed§
operating, investing and financing activities. \$m`ZopÝg¨J go H¡$e âbmo H$m dJuH$aU {H$`m OmVm h¡Ÿ&
The main objectives of preparing cash H¡$e âbmo ñQ>oQ>_|Q> V¡`ma H$aZo Ho$ _w»` CÔoí`
flow statement are as follows: {ZåZ{c{IV h¡:
1. Efficient management of cash. 1. H¡$e H$m B{\${eE§Q> _¡ZoO_|Q>Ÿ&
2. Maintaining liquidity by cash flow infor- 2. H¡$e âbmo H$s OmZH$mar Ûmam {bpŠd{S>Q>r ~ZmE
mation. aIZmŸ&
3. Know the cash flows from different activ- 3. {d{^Þ EpŠQ>{d{Q>O H$s ghm`Vm go H¡$e âbmo H$mo
ities. kmV H$aZmŸ&
4. Short-term planning. 4. em°Q>©-Q>_© ßbmqZJŸ&

Classification of Cash Flows H¡$e âbmo H$m dJuH$aU
For better interpretation, cash flow AS-3 (g§emo{YV) Ho$ AZwgma ~ohVa EZm{b{gg
statement should report cash flows during Ho$ {cE H¡$e âbmo ñQ>oQ>_|Q> _| {H$gr Ad{Y go gå~pÝYV
the period classified by operating, investing H¡$e âbmo H$mo Am°naoqQ>J, BÝdopñQ>¨J Ed§ \$m`ZopÝg§J
and financing activities according to AS-3
(Revised). This is the requirement of accoun- EpŠQ>{dQ>rO _| dJuH¥$V {H$`m J`m h¡Ÿ& `h dJuH$aU
ting standard as well as the requirement of AH$mCpÝQ>¨J ñQ>¢S>S>© Ho$ gmW-gmW AÝ` ao½`yboQ>ar Am°Wmo[aQ>rO
other regulatory authorities. Thus, cash flows Ho$ {bE Amdí`H$ h¡Ÿ& AV: H¡$e âbmo H$mo {ZåZ{c{IV VrZ
are classified into three main categories: _w»` lo{U`m| _| {d^ŠV {H$`m Om gH$Vm h¡:
1. Cash Flows from Operating Activities. 1. Am°naoqQ>J EpŠQ>{dQ>rO go H¡$e âbmoO&
2. Cash Flows from Investing Activities. 2. BÝdopñQ>¨J EpŠQ>{dQ>rO go H¡$e âbmoO&
3. Cash Flows from Financing Activities. 3. \$m`ZopÝg¨J EpŠQ>{dQ>rO go H¡$e âbmoO&
Cash Flows from Operating Activities Am°naoqQ>J EpŠQ>{dQ>rO go H¡$e âbmo
Operating activities are the principal Am°naoqQ>J EpŠQ>{dQ>rO _| {H$gr B§Q>aàmBO H$s aodoÝ`y-
revenue-generating activities of the enterprise OZaoqQ>J EpŠQ>{dQ>rO (BÝdopñQ>¨J Ed§ \$m`ZopÝg¨J EpŠQ>{dQ>rO