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The indirect method begins from profit before tax and adjusts for non-cash items plus working capital movements. No journal entry arises immediately, the computation appears only inside the statement’s “operating activities” section utilizing oblique technique format per standard follow. Investing actions Acquisition/disposal of long-term assets or investments exterior money equivalents. Tax funds not clearly attributable to investing or financing are included within working activities by default, no separate therapy applies. Money flows from contracts held for trading purposes are always included within operating activities somewhat than being separately disclosed. The assertion of cash flows is certainly one of 5 major financial statements required underneath Ind AS 1.
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