1. Accounting Standard: 3 Cash Flow Statement

2. Accounting standard-3 is mandatory for listed companies and entity with a turnover exceeding Rs.50 crore.

3. Accounting standard-3 deals with cash flow during the period from operating, investing and financing activities.

4. Operating Activities: Operating activity are the principal revenue-producing activity that are not investing or financing activities. Enterprises should represent cash flow from operating activities using either direct method or indirect method.

5. Investing Activities: Investing Activities refer to acquisition and disposal of long term assets and other investment which are not included in cash equivalent.

6. Financing Activities: Financing activities are those activities that result in changes in the size and composition of owners’ capital and borrowing of the enterprises. Ex: changes in share capital and loan fund.

7. Extraordinary items should be classified as arising from operating, investing or financing activities.

8. Disclosure: Cash and cash equivalent, Reconciliation of amount in its cash flow with equivalent items, Significant cash and cash equivalent which are not available for use along with a comment by the management.