For many years, company financial statements consisted of a statement of financial position and a statement of profit and loss prepared using the accruals basis. Many also have to include a statement of cash flows.
Required
a. Explain why a statement of cash flows is considered to add value to the information already available in the statement of financial position and the statement of profit and loss.
b. Itemize the different sections that IAS 7 requires to be included in the statement of cash flows and explain the information each one can provide to users.