An entity is not required to disclose:
A) Components of cash and cash equivalents
B) A reconciliation between the net amounts presented using the indirect method and the gross amounts that would be presented using the direct method for operating cash flows
C) Changes in policy determining cash and cash equivalents
D) Reconciliation of amounts of cash and cash equivalents in the statement of cash flows with amounts reported in the statement of financial position
E) Amounts of any significant cash and cash equivalent balances not available for use

Question

Quizplus · Accepted Answer

A reconciliation between the net amounts presented using the indirect method and the gross amounts that would be presented using the direct method for operating cash flows is not a required disclosure. Entities typically choose either the direct or indirect method for reporting operating cash flows and are not required to provide a reconciliation between the two methods.

An Entity Is Not Required to Disclose