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42A Money flows arising from modifications in possession pursuits in a subsidiary that do not end in a loss of control shall be categorised as cash flows from financing actions , except the subsidiary is held by an funding entity, as outlined in Ind AS one hundred ten, and is required to be measured at fair worth through revenue or loss. 42 The combination quantity of the money paid or received as consideration for obtaining or losing control of subsidiaries or other businesses is reported in the assertion of money flows internet of cash and money equivalents acquired or disposed of as part of such transactions, events or adjustments in circumstances. Subsequently, taxes paid are normally categorized as cash flows from working activities.
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An entity recognises a money circulate in its assertion when there is an precise influx or outflow involving money or cash equivalents during the reporting interval. Indirect method Adjusts profit/loss for non-cash gadgets and working capital changes to derive money circulate. Financing actions Actions changing contributed equity or borrowings structure. Working activities Primary revenue-generating actions not categorised as investing or financing.
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