UGC NET COMMERCE June 2019 Q1
0. A statement of change in financial position typically would NOT disclose the effect of:
- Option : B
- Explanation : Accounting Standard 3 (Revised) issued by Institute of Chartered Accounts of India has made it mandatory for listed companies and other enterprises whose turnover exceeds Rs.50 crore to prepare and present the Statement of Changes in Financial Position along with the Financial Statement Realising the importance of such a statement, a number of companies in India have started providing an analysis of their funds and cash flow position in their annual reports. Companies who are required to comply with Accounting Standard (Revised), the presentation of cash flow statement has become a part of the financial statements. The Statement of changes in Financial Position presents condensed and summarised information (prepared from data collected from Income Statement and Balance Sheet) which is not readily available in these statements. In fact the statement of changes in Financial Position in a refined form or an extension of the funds flow or cash flow statement. It is more informative and comprehensive in indicating the financial position of an enterprise.
