AASB 107 requires that a note to the accounts shall disclose a reconciliation of cash flows from operating activities to operating profit or loss after income tax as reported in the statement of comprehensive income.The correct adjustments to the operating profit/loss after tax include:
A) add; depreciation expense, gain on sale of plant and equipment, increase in interest payable, increase in inventories.
B) subtract; increase in future income tax benefit, increase in accounts receivable, loss on sale of plant and equipment.
C) add; increase in accounts payable, increase in income taxes payable, increase in deferred taxes payable.
D) subtract; amortisation expense, increase in future income benefit, increase in interest payable.

Question

Quizplus · Accepted Answer

The Answer of AASB 107 requires that a note to the accounts shall disclose a reconciliation of cash flows from operating activities to operating profit or loss after income tax as reported in the statement of comprehensive income.The correct adjustments to the operating profit/loss after tax include:
A) add; depreciation expense, gain on sale of plant and equipment, increase in interest payable, increase in inventories.
B) subtract; increase in future income tax benefit, increase in accounts receivable, loss on sale of plant and equipment.
C) add; increase in accounts payable, increase in income taxes payable, increase in deferred taxes payable.
D) subtract; amortisation expense, increase in future income benefit, increase in interest payable.

AASB 107 Requires That a Note to the Accounts Shall