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The main disadvantage of cash flows is the Opportunity to reclassify some cash outflows/inflows from operating activities to investing activities.
E.g. Capitalisation of expenses.
Could you explain and give more examples, please Mr Moffat.No!
I don’t know where you read this, but unless you have quoted it out of context then it is nonsense. The opportunity exists to classify things wrongly in all the financial statements, but that is not a disadvantage of producing the statements in the first place!
😀 haha it’s bpp kit!
Thank you, Ive learnt that????
Maybe they mean the possibility of capitalizing for example car instead of including it as a running cost and trying to manipulate the np? Or is it anyway a mistake that is detected by some governmental taxation body?? Comment please:)
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