Question: In previous years, Easycash Ltd presented its cashflow statement using the 'indirect method' however in the current year the CEO has requested that the 'direct

In previous years, Easycash Ltd presented its cashflow statement using the 'indirect method' however in the current year the CEO has requested that the 'direct method' be used.

Discuss a response to the CEO discussing whether this is a change in an accounting policy referring to the relevant Australian accounting standards. Outline the disclosures that would be required with a change in an accounting policy and discuss the differences between the two methods, and if one method is considered more useful than the other method.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

In previous years, Easycash Ltd presented its cashflow statement using the 'indirect method' however in the current year the CEO has requested that the direct method be used. Prepare a response to...

In previous years, Easycash Ltd presented its cashflow statement using the indirect method however in the current year the CEO has requested that the direct method be used. Prepare a response to the...

In previous years, Easycash Ltd presented its cashflow statement using the 'indirect method' however in the current year the CEO has requested that the 'direct method' be used. esponse to the CEO...

Complete Part Two only This practice set is designed in two parts. The first part provides a review of the financial statements of a corporation selling sunglasses. Sally's Sunglasses, a corporation,...

Please answer all parts completely! Will leave thumbs up, positive comments, etc. The financial information for the past two years (2021 and 2022) is provided. "Spartan Cases, Inc.'s" collection...

Razul and Amy decided to start a partnership called SA Consulting on January 1, 2020. Each of them contributed a number of items to the partnership, which are listed below. All tangible assets are...

po Adobe Acrobat Reader DC 20 Columns Comp... 21 Influence Liner ACCT 102 MAIN AS... * 3 / 9 66,7% IGNORE VAT You have recently been appointed as the accountant of Exquisite Pools (Ply) Ltd...

how to explain to the client based on the question BBS11.6 Peter Sole, a sole trader, the owner- manager of Cool Shooz Pty Ltd, is unfamiliar with the statement of cash flows that you, as his...

Section A Below is the summarized draft statement of financial position of Juniper Ltd, a publicly listed company, as at 31 March 2019. $'000 $'000 ASSETS Non-current assets Property at valuation :...

BCOR 3010 Assignment 2 - The Accounting Cycle Version C You have been hired by Gnomeo, Inc., a company that buys and resells miniature garden gnomes. The company started business on January 1,2019 ....

ArdMan Corporation manufactured 36,500 units during April. The following fixed overhead data relates to April: Actual Static Budget Production 36,500 units 35,000 units Machine-hours 5,400 hours...

Consider the experimental results for the following randomized block design. Make the calculations necessary to set up the analysis of variance table. A 10 13 19 4 21 5 9 9 Use = 0.05 to test for...

Bhekisizwe has a refund of R 6 0 0 outstanding for five months from SARS for the cument year of assessment. SARS credited her account with R 6 interest, and she now has a toeal refund of R 6 0 6 owed...

In the Branding Your Company supplemental article the author suggests you start by using a/an _________ _________ to brand your company. a. Back story b. Effective hash tag c. Colorful brochure

Explain how using EFAS and IFAS tables contribute to the understanding of a companys competitive environment and internal resources and capabilities. (2 pages) Select a company and conduct an...

Discuss the roles assigned to different categories of merchandize and the way their unique features are used in store design.

Using consequential, rule-based and character theories what should Juanita (Manager of the sales department) do if she has an employee that does a great job but has an inconsistent personality?

The best persuasive requests a. offer a product more cheaply than all other competitors. b. are spoken rather than written. c. focus solely on direct benefits. d. anticipate audience resistance.

Greasing payments are prohibited in all cases under the foreign Corrupt Practices Act. True False Greasing payments are prohibited in all cases under the foreign Corrupt Practices Act. True False

4. Present multiple themes at once. Then you will get to know a little about how others think, when some of the themes are rejected.

5. Get a third party to mediate, so that both parties have the opportunity to go back to their original negotiating point that they had before the third party put forward his/her proposal.

1. Discuss the following statements: a) What we seek to achieve is different from why we seek to achieve it. b) Thoughts are different from what we are thinking about. c) Writing to find out what one...