rizky purnama sary

• ·         The direct method shows each major class of gross cash receipts and gross cash payments. The operating cash flows section of the statement of cash flows under the direct method would appear something like this:

Cash receipts from customers	xx,xxx
Cash paid to suppliers	xx,xxx
Cash paid to employees	xx,xxx
Cash paid for other operating expenses	xx,xxx
Interest paid	xx,xxx
Income taxes paid	xx,xxx
Net cash from operating activities	xx,xxx

• The indirect methodadjusts accrual basis net profit or loss for the effects of non-cash transactions. The operating cash flows section of the statement of cash flows under the indirect method would appear something like this:

Profit before interest and income taxes		xx,xxx
Add back depreciation		xx,xxx
Add back amortisation of goodwill		xx,xxx
Increase in receivables		xx,xxx
Decrease in inventories		xx,xxx
Increase in trade payables		xx,xxx
Interest expense	xx,xxx
Less Interest accrued but not yet paid	xx,xxx
Interest paid		xx,xxx
Income taxes paid		xx,xxx
Net cash from operating activities		xx,xxx

The fair value hierarchy introduces 3 levels of inputs based on the lowest level of input significant to the overall fair value (IFRS 7.27A-27B):

• Level 1 – quoted prices for similar instruments
• Level 2 – directly observable market inputs other than Level 1 inputs
• Level 3 – inputs not based on observable market data