Answer the Following: A.What Are the Similarities and Differences Between the Direct and the Direct

question 20

Essay

Answer the following:
a.What are the similarities and differences between the direct and indirect methods of preparing the statement of cash flows?
b.In practice,which method of preparation is used for the statement of cash flows and why?
c.Is the indirect method of presenting the statement of cash flows required by the IASB?
d.Briefly discuss how unrealized gains and losses arising from held-for-trading investments that are not designated as cash equivalents are reported on the statement of cash flows.

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Definitions:

Risks

The potential for losses or other adverse outcomes in any investment or business operation, often quantified in terms of likelihood and impact.

R&D Work

Research and Development activities aimed at developing new products, processes, or services and improving existing ones.

Basic Research

Research conducted to increase fundamental knowledge and understanding, without specific immediate commercial applications.