cash flows

munshi · 05-03-2003, 03:54 PM

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

AB · 05-03-2003, 04:59 PM

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.

Asif · 05-03-2003, 06:59 PM

yes mere jaan U R RIGHT.

Muhammad Asif Masood
for islam see,
www.dawateislami.net

munshi · 05-03-2003, 09:41 PM

assalam olaikum
thanks alot friends.......
jazakullah
zia

sirhandi · 05-06-2003, 05:32 AM

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,

munshi · 05-06-2003, 01:43 PM

salam
array sirhindi bhai iget ur point.....aap nay aik sath 2 post kar deen....thanks a lot .........
zia

Asif · 05-08-2003, 01:45 AM

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,
www.dawateislami.net

Khurrum · 05-10-2003, 05:41 PM

Direct methodis really more easy and far descriptive than indirect method.

kris · 06-07-2004, 04:41 AM

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

sumaaan · 06-07-2004, 05:40 AM

<BLOCKQUOTE 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>

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.

smraza · 06-08-2004, 02:53 AM

<BLOCKQUOTE 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>
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