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Statement of Cash flows – indirect method

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Statement of Cash flows – indirect method

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  • May 31, 2018 at 10:52 am #455055
    shanco1610
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    Hi,

    When trying to calculate the cash generated from operations, if an FX loss is added back to PBIT, would an FX gain be deducted?

    Thank you!

    May 31, 2018 at 11:57 am #455074
    Kim Smith
    Keymaster
    • Topics: 130
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    • ☆☆☆☆☆

    Yes.

    But, adjustments are to “profit before taxation” not “profit before interest and taxation” (otherwise adding back interest expense would not be an adjustment).

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