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Cash flow statement Direct Method

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Cash flow statement Direct Method

  • This topic has 4 replies, 3 voices, and was last updated 7 years ago by MikeLittle.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • December 3, 2015 at 2:38 pm #287279
    teeboyz
    Member
    • Topics: 19
    • Replies: 52
    • ☆☆

    Hello Mike

    Is it safe for not knowing a bit of this method? Was there any question that asked for Direct Method ? I don’t have any old pass year question

    Is it safe to ignore it?

    December 3, 2015 at 2:48 pm #287285
    francois988
    Participant
    • Topics: 2
    • Replies: 51
    • ☆☆

    i dont think you should, direct method is too tedious in real life, i dont think the examiner would want to test students on the Direct method, however the indirect method is sure to come out Dec 2015 🙂 my bet :0

    December 4, 2015 at 12:04 am #287381
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22699
    • ☆☆☆☆☆

    Thank you Francois for your input, ill-advised though it may be!

    Teeboyz, the only time that direct method has been asked at either F7 or P2 level was a wordy 5 mark question …. “If benchmark is the direct method, why do most companies use the indirect method?”

    It is HUGELY IMPROBABLE that you’re going to face a direct method cash flow question

    As for the chances of a cash flow question in the exam next week …… it’s a possibility but I can’t see it as a probability

    December 4, 2015 at 2:51 am #287393
    teeboyz
    Member
    • Topics: 19
    • Replies: 52
    • ☆☆

    @Mike

    Okay..I will take your advice


    @Francois

    No, i don’t rely on predict or forecasting ….i’ll just do well in 3 , balance sheet, p/l , cash flow ..to get more comfy security ..Just wondering if i could ignore direct method

    Thanks both of you

    December 4, 2015 at 9:19 am #287471
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22699
    • ☆☆☆☆☆

    You’re welcome

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