Statement of Cash flows – indirect method

This topic has 1 reply, 2 voices, and was last updated 8 years ago by Kim Smith.

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May 31, 2018 at 10:52 am #455055
shanco1610
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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
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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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