AASB 107 requires ledger accounts to be reconstructed in order to calculate cash flows from operating activities.

Question

Quizplus · Accepted Answer

AASB 107 (Statement of Cash Flows) does not require the reconstruction of ledger accounts but rather the presentation of cash flows during the period, classified by operating, investing, and financing activities, which can be prepared using either the direct or indirect method for operating activities.

AASB 107 Requires Ledger Accounts to Be Reconstructed in Order