AASB 107 provides for which method of reporting cash flows from operating activities?
A) Either the direct or the indirect method
B) The direct method
C) The indirect method
D) The working capital method

Question

Quizplus · Accepted Answer

AASB 107 allows for either the direct or the indirect method of reporting cash flows from operating activities. The direct method provides a detailed breakdown of the types of cash receipts and payments during the period, while the indirect method reconciles net profit or loss to net cash flow from operating activities. Both methods are acceptable under AASB 107.

AASB 107 Provides for Which Method of Reporting Cash Flows