The preparation of the Cash Flow Statement is governed by Accounting Standard (AS)-3 (Revised).
AS-3 (Revised) deals specifically with the preparation of Cash Flow Statements, outlining the methods of reporting cash inflows and outflows, as well as the classification of cash flows into operating, investing, and financing activities.
Other standards mentioned:
AS-26 relates to Intangible Assets.
AS-10 pertains to Property, Plant, and Equipment.
AS-16 deals with Borrowing Costs.
Thus, the correct answer is (A): AS-3 (Revised).
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The preparation of Cash Flow Statements is governed by Accounting Standard 3 (AS 3 Revised). This standard outlines the requirements for presenting information about the historical changes in cash and cash equivalents of an entity by means of a cash flow statement, which classifies cash flows into operating, investing, and financing activities.
