Assume you are part of the finance team at Dandelion Plc. After reviewing the financial statements...

 

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Assume you are part of the finance team at Dandelion Plc. After reviewing the financial statements for FY 2021, during the meeting, one of the management team members had raised the question as follows, "Why the Statement of cash flow is a part of the financial statements? Is the reporting of financial information for external stakeholders limited by only publishing the Statement of profit/ loss and Statement of financial position?" Explain the reasons for the Statement of cash flow being an integral part of the financial Statement. Assume you are part of the finance team at Dandelion Plc. After reviewing the financial statements for FY 2021, during the meeting, one of the management team members had raised the question as follows, "Why the Statement of cash flow is a part of the financial statements? Is the reporting of financial information for external stakeholders limited by only publishing the Statement of profit/ loss and Statement of financial position?" Explain the reasons for the Statement of cash flow being an integral part of the financial Statement.

Answer rating: 100% (QA)

Cash flow is the net amount of cash and cash equivalents being transferred into and out of a busines... View the full answer