On the facing page is the consolidated statement of cash flows for Telefónica, S.A. (ESP) for the year ended December 31, 2008 and 2009.

(a) What method does Telefónica use to prepare the operating cash flows section of its statement of cash flows? Briefly discuss how you can determine this.
(b) Telefónica reported net income of €7,937 in 2009 and €7,826 in 2008 (in millions). Briefly discuss some f the adjustments that would explain such a difference in its income and operating cash flows.
(c) IFRS requires disclosure of interest, taxes, and dividends. Briefly describe how Telefónica has complied with these requirements. What other approach could a company take to comply with the reportingrequirement?

  • CreatedJune 17, 2013
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