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Cash flow

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Cash flow

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • March 16, 2018 at 12:05 pm #442790
    miracle657
    Participant
    • Topics: 65
    • Replies: 26
    • ☆☆

    State whether the following statements is true or false? The amortisation charge for the year on intangible assets will appear as an item under ‘Cash flows from operating activities’ in a statement of cash flows
    Sir, correct answer is TRUE…Why?As this charge only used for adjustment to profit before tax however it isn’t included cash flow statement, it is non cash transaction

    March 17, 2018 at 2:44 pm #442857
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54832
    • ☆☆☆☆☆

    But when using the indirect method, we start with the profit and then adjust by non-cash items when getting the cash flows from operating activities.

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  • The topic ‘Cash flow’ is closed to new replies.

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