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Cash Flow Statement
07-22-2003, 03:01 AM,
Cash Flow Statement
I would like to have some comments on the following

If an Unlisted Public Company changes the presentation of its cash flow statement from indirect method to the direct method, what would be the disclosure requirements of IAS and/or Companies Ordinance 1984 or any other SECP regulation in this change in the presentation of the Cash Flow Statement.

Would this change comes under change in accounting policy as per IAS 8?

Please also quote the section(s) reference(s) in case of any requirements.

Thank you.
07-22-2003, 03:40 AM,
Asalam o alaikum
I think its only a change of presentation and not that of accounting policy or anything. and IAS 7 also prefers the direct method over the indirect method.
The only thing, you are gonna have to change the last year's figures for the cash flow, for which we have that note appearing towards the end, "where necessary prior year's figures have been restated for comparison purposes."

I'm sorry, but I cant quote you a referrence or section, this is one of my weaknesses (the other being using incorrect spellings often), I prefer leaving that to the person opposing my opinion. <img src=icon_smile_big.gif border=0 align=middle> so as long as there's none, I rulez. <img src=icon_smile_big.gif border=0 align=middle>

Me rulz
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

07-26-2003, 01:33 AM,
Thankx for your replies.

Edited by - Muhammad Nauman on Jul 25 2003 83454 PM
07-26-2003, 03:50 AM,
you are welcome


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