Under IFRS Where a Company Uses the Indirect Method, Which

question 57

Multiple Choice

Under IFRS where a company uses the indirect method, which of the following would not be reported in the statement of cash flows?

• A)Depreciation expense.
• B)Retirement of bonds payable.
• C)An increase in inventory.
• D)Purchase of equipment using a note.

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Definitions:

Directors' Declaration

A statement by the company's directors asserting the accuracy of the financial statements.

Auditor's Report

A formal opinion issued by an auditor based on an audit of a company's financial statements, indicating whether the statements are free from material misstatement and accurately represent the company's financial position.

Financial Statements

A comprehensive set of reports including the balance sheet, income statement, cash flow statement, and statement of changes in equity, that together provide an overview of a company's financial position and performance.

Retrospective Restatement

A correction of the recognition, measurement, and disclosure of amounts of elements of financial statements as if a prior period error had never occurred.