Question: As part of the year end accounting process for your company you are

As part of the year-end accounting process for your company, you are preparing the statement of cash flows according to IFRS. One of your team, a finance major, believes the statement should be prepared to report the change in working capital because analysts many times use working capital in ratio analysis. Your supervisor would like research conducted to verify the basis for preparing the statement of cash flows.
Access the IFRS authoritative literature at the IASB website ( When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.)
(a) What is the primary objective for the statement of cash flows? Is working capital the basis for meeting this objective?
(b) What information is provided in a statement of cash flows?
(c) List some of the typical cash inflows and outflows from operations.

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