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For DC-cash, isnt the same with liability. Like when we dont pay a liability by the end of the year, the liabiliy increases. When we use the indirect method, it should be treated as a cash inflow, although we havent pay the cash?
Thank you Stephen! I did not expect it was this simple.
I forgot to include another question regarding the cash flow last time.
If there has been a deferred consideration for acqusition in 2 years which will be settled by cash, I think this will create a liability, right? When we apply the indirect method, there should a positive number under the investing activities.
However, if there has been a deferred consideration of shares exchange, will this create a liability? Im thinking there shouldnt be a liability, right? Because its an exchange. The cash flow should not be affected as well.
If you could clear up my confusion, I would really appreciate it!
