Hey Mike,
Is the contribution paid to retirement benefit scheme a cash outflow? The strange things is the Q1 of Pilot paper and December 2008, which are both cash flow statment question. Both have the contributions paid to scheme, but in Pilot paper, it is a cash outflow, while in Dec.2008, the examiner treat it as a non-cash outflow, with the comment that the contributions paid to the scheme is from the scheme's asset, not from the company. I agree with that comment, so is the treatment from pilot paper wrong??? Could you double confirm for me so that I can make it sure how to deal with when this come up in the exam. Many thanks!
Is the contribution paid to retirement benefit scheme a cash outflow? The strange things is the Q1 of Pilot paper and December 2008, which are both cash flow statment question. Both have the contributions paid to scheme, but in Pilot paper, it is a cash outflow, while in Dec.2008, the examiner treat it as a non-cash outflow, with the comment that the contributions paid to the scheme is from the scheme's asset, not from the company. I agree with that comment, so is the treatment from pilot paper wrong??? Could you double confirm for me so that I can make it sure how to deal with when this come up in the exam. Many thanks!