06-07-2004, 05:40 AM
<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.
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.
