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In addition, the disclosure requirement in paragraph 44A additionally applies to modifications in financial assets (for example, assets that hedge liabilities arising from financing activities) if money flows from those financial assets were, or future money flows shall be, included in cash flows from financing activities. (a) the acquisition of assets both by assuming immediately associated liabilities or via a finance lease; (b) the acquisition of an entity by the use of an equity problem; and (c) the conversion of debt to equity. The exclusion of non-cash transactions from the statement of cash flows is consistent with the objective of a statement of cash flows as these items don’t involve cash flows within the current period. 40A An investment entity, as outlined in Ind AS one hundred ten, Consolidated Financial Statements, need not apply paragraphs 40(c) or 40(d) to an investment in a subsidiary that is required to be measured at fair value via revenue or loss.
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- (i) changes during the period in inventories and operating receivables and payables; (ii) different non-cash items; and (iii) different items for which the money results are investing or financing cash flows.
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