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Statement of Cashflow

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Statement of Cashflow

  • This topic has 1 reply, 2 voices, and was last updated 14 years ago by MikeLittle.
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  • May 7, 2011 at 3:15 pm #48359
    ebagwisanyi
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    1. Can we expect the use of a direct method in preparing a statement of cashflow in the final exam?

    2. What is the diference in a question which wants the statement of cash flows to be prepared in compliance with
    7 and

    where a question just saying prepare a statement of cash flows using the indirect method.

    May 8, 2011 at 3:37 pm #81569
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    In compliance with IAS 7 – use the indirect method – that’s in compliance with 7.

    But he invariably asks specifically for a Statement of Cash Flow in compliance with IAS 7 using the indirect method. I cannot remember him asking for the use of the direct method. He has asked in the past the question “If direct method is benchmark, why do most companies use the indirect method 5 marks” so you need to be prepared for that

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