Asked by Bethany Cheek on Jun 05, 2024
Verified
A reconciliation of profit or loss and cash flows is required using either the direct or indirect method of disclosing cash flows from operations.
Reconciliation Of Profit
The process of adjusting the profit or loss figures from one accounting period to another to take into account differences caused by transactions, accounting methods, or errors.
- Distinguish between the direct and indirect approaches in determining cash flows from operating activities.
Verified Answer
DS
dhruv sonavaneJun 06, 2024
Final Answer :
True
Explanation :
It is a requirement under International Accounting Standard (IAS) 7, Statement of Cash Flows, to provide a reconciliation of profit or loss and cash flows through the operating activities section of the statement of cash flows using either the direct or indirect method.
Learning Objectives
- Distinguish between the direct and indirect approaches in determining cash flows from operating activities.
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