Reconciliation?

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. There are concerns over the current classification of items in the statement of cash flows. Which of the following statements is not a current classification issue?

  2. IAS 7 Statement of Cash Flows was first published in 1992 and allows users of financial statements to assess how different types of activity affect the financial position of a company by classifying cash flows accordingly. Which of the following classifications is not required by IAS 7?

  3. In December 2014,the IASB published an Exposure Draft (ED), which proposes amendments to IAS 7. What are the main objectives of the ED?

  4. Some items of property, plant and equipment (PPE) are purchased from suppliers on similar credit terms to those for inventory and for amounts payable to other creditors. As a result, transactions for property, plant and equipment may be incorrectly included within changes in accounts payable for operating items. Under what heading should purchases of PPE be shown in the statement of cash flows?

  5. For a number of years, users have been requesting the IASB to require companies to provide net debt reconciliation. How will the proposed amendment to IAS 7 help users in this regard?