COMM-1107EL Chapter Notes - Chapter 12A: Deferral, Accrual, Income Statement

• School: Laurentian
• Department: Commerce and Administration
• Course: COMM-1107EL
• Professor: Kayla Levesque

Document Summary

Appendix 12a preparing the statement of cash flows: direct method. Prepare a statement of cash flows using the direct method of determining. Ifrs and aspe encourage companies to prepare the statement of cash flows using the direct method because it provides clearer information about the sources and uses of cash. To prepare the statement of cash flows using the direct method, proceed as follows: Lay out the template of the operating activities section by the direct method (receipts, payments, net cash provided by (used for) operating activities) Use the comparative balance sheet to determine the increase or decrease in cash during the period. The change in the cash is the check figure for the statement of cash flows. Use available data to prepare the statement of cash flows the statement reports only those transactions with cash effects. Payments for interest expense and income tax expense. Gain on sale of property, plant, and equipment.