07-25-2003, 10:54 PM
Dear Nauman,
1st of all, IAS is not supposed to apply on public unlisted companies (only in pakistan), but we take guidance while preparing financial statments of other than listed companies.
the Paki rightly said that Changing the Presentation of cash flow statment from indirect to direct doesnt mean the change in accounting policy.
As far as the cash flow is concerned, As per Para 11 of IAS 7
"An enterprise presents its cash flows from operating, investing and financing activities in a manner which is most appropriate to its business"
anyways, IAS 8 not supposed to apply while changing the method of presenting Cash flow,
IAS 7 allow both direct and indect method of Cash Flow statement, but direct method is little bit complicated
S M R
1st of all, IAS is not supposed to apply on public unlisted companies (only in pakistan), but we take guidance while preparing financial statments of other than listed companies.
the Paki rightly said that Changing the Presentation of cash flow statment from indirect to direct doesnt mean the change in accounting policy.
As far as the cash flow is concerned, As per Para 11 of IAS 7
"An enterprise presents its cash flows from operating, investing and financing activities in a manner which is most appropriate to its business"
anyways, IAS 8 not supposed to apply while changing the method of presenting Cash flow,
IAS 7 allow both direct and indect method of Cash Flow statement, but direct method is little bit complicated
S M R
