The Hindu Business Line : ICAI issues revised accounting standard draft

New Delhi, Oct. 13 The Institute of Chartered Accountants of India (ICAI) has issued an exposure draft of revised Accounting Standard (AS) 3, which relates to Statement of Cash Flows, on the lines of corresponding International Accounting Standard-7 for public comments.

According to an official communiqué, the exposure draft of revised AS-3 contains more disclosure requirements compared with the existing AS-3 regarding 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, among others.

The existing AS-3 does not provide for any specific treatment on these issues, the statement added.

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.

In spite of the differences with IAS-7, the standard would still be considered as converged as the International Accounting Standards Board permits removal of alternatives. The exposure draft has been hosted on ICAI’s Web site for public information. The last date for sending comments is November 10.

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