AS 3: Cash Flow Statements

AFM Definition, Scope & Accounting Standards including Ind AS Free JAIIB Capsule 43 views Updated 21 Sep 2026

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AFM · Definition, Scope & Accounting Standards including Ind AS

How does AS 3 classify cash flows, and what qualifies as a cash equivalent?

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Cash flows are classified into Operating, Investing, and Financing activities. Cash equivalents are short-term, highly liquid investments.

Cash flow statements can be prepared using either the Direct or Indirect method. Cash includes cash in hand and demand deposits with banks.

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AS 3: Cash Flow Statements — Full Text

How does AS 3 classify cash flows, and what qualifies as a cash equivalent?

Answer

Cash flows are classified into Operating, Investing, and Financing activities. Cash equivalents are short-term, highly liquid investments.

Additional notes

Cash flow statements can be prepared using either the Direct or Indirect method. Cash includes cash in hand and demand deposits with banks.

Part of Accounting & Financial Management for Bankers · Definition, Scope & Accounting Standards including Ind AS · Last updated 21 Sep 2026

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