Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
cash flows
05-03-2003, 03:54 PM
Post: #1
cash flows
salam
my ias book is lost .....as i am new to karachi i cant find any one to tell me what is the benchmark treatment of cash flows.........bppp book has that it is indirect method and icp ccountants megazine ha that is direct method.....i ma confused......
salam
zia
Visit this user's website Find all posts by this user
Quote this message in a reply
05-03-2003, 04:59 PM
Post: #2
 
Yeap, by the look of your mail, you do appear Confused -)

As I recall, IAS suggests that Cashflows arising from Operating, Financing and investing activities should be reported using Direct method.

In Pakistan, indirect method is commonly used (i have seen only a couple of companies who uses Direct method), as it is more easier.
Visit this user's website Find all posts by this user
Quote this message in a reply
05-03-2003, 06:59 PM
Post: #3
 
yes mere jaan U R RIGHT.

Muhammad Asif Masood
for islam see,
http://www.dawateislami.net
Visit this user's website Find all posts by this user
Quote this message in a reply
05-03-2003, 09:41 PM
Post: #4
 
assalam olaikum
thanks alot friends.......
jazakullah
zia
Visit this user's website Find all posts by this user
Quote this message in a reply
05-06-2003, 05:32 AM
Post: #5
 
so now u get it that the benchmark treatment of ISA 7 is direct
method n not indirect....now the reason why most ppl use the allowed
alternative is that there r information which the management doesnt
want to share with the outsiders..ie list of debtors n other things
n direct method reveals all that stuff....so they avoid direct method
n use indirect instead.....

regards,
Visit this user's website Find all posts by this user
Quote this message in a reply
05-06-2003, 01:43 PM
Post: #6
 
salam
array sirhindi bhai iget ur point.....aap nay aik sath 2 post kar deen....thanks a lot .........
zia
Visit this user's website Find all posts by this user
Quote this message in a reply
05-08-2003, 01:45 AM
Post: #7
 
Majid bhai zia ne AAP ka point sumuh liya hai.

waise Munshi bhai AAP ias ki book nayee le lo. that's very important.

Muhammad Asif Masood
for islam see,
http://www.dawateislami.net
Visit this user's website Find all posts by this user
Quote this message in a reply
05-10-2003, 05:41 PM
Post: #8
 
Direct methodis really more easy and far descriptive than indirect method.
Visit this user's website Find all posts by this user
Quote this message in a reply
06-07-2004, 04:41 AM
Post: #9
 
I think if company is using indirect method they have to disclose the operating section of direct method also, thus companies are not conceling any thing to user. As per IAS and SFAS.
Regards,

kris
Visit this user's website Find all posts by this user
Quote this message in a reply
06-07-2004, 05:40 AM
Post: #10
 
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>

so now u get it that the benchmark treatment of ISA 7 is direct
method n not indirect....now the reason why most ppl use the allowed
alternative is that there r information which the management doesnt
want to share with the outsiders..ie list of debtors n other things
n direct method reveals all that stuff....so they avoid direct method
n use indirect instead.....

regards,


<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>

IAS 7 'Cashflows' allows treatment of both, the 'direct' and 'indirect' method... However, the benchmark treatment is using the 'direct' method as quoted by Sirhandi.
Visit this user's website Find all posts by this user
Quote this message in a reply
06-08-2004, 02:53 AM
Post: #11
 
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>

so now u get it that the benchmark treatment of ISA 7 is direct
method n not indirect....now the reason why most ppl use the allowed
alternative is that there r information which the management doesnt
want to share with the outsiders..ie list of debtors n other things
n direct method reveals all that stuff....so they avoid direct method
n use indirect instead.....

regards,


<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
Dear Sirhandi,
I am confused with the list of debtors and other things, is there any requirement in IAS 7 to publish the list of debtors while using the Direct method of cash flows????
I dont think so, u are just required to show each major class of gross cash receipts and gross cash payments while using the direct method of cash flows.
as per IAS 7 whichever method u follow, u must classify the activities of an enterprise into Operating, Investing and Financing.

and dear munshi if have lost your book of IAS, then click on the following link to see the summaries of IASs.
http://http//www.accountancy.com.pk/refe..._index.asp

SMR
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)