Asked by Bruno Vieira on May 25, 2024
Verified
The IASB recommends that the operating section of the statement of cash flows be reported using the direct method.
IASB
The International Accounting Standards Board, an independent body responsible for the development and publication of International Financial Reporting Standards (IFRS).
- Apprehend the dissimilarities and likenesses in the direct and indirect strategies for the development of the statement of cash flows.
Verified Answer
TS
Tanjena SarkerMay 29, 2024
Final Answer :
True
Explanation :
The IASB recommends the use of the direct method to report the operating section of the statement of cash flows, although the indirect method is also acceptable. However, many companies still prefer to use the indirect method due to its ease of use and lower costs.
Learning Objectives
- Apprehend the dissimilarities and likenesses in the direct and indirect strategies for the development of the statement of cash flows.
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