ABC ltd is a publicly listed company. Details of its statements of financial position as at 31 March 2023 and 2022 are shown below together with other relevant information: Statement of financial position as at 31 March 2023 31 March 2022 Non-current assets (note (i)) $m $m $m $m Property, plant and equipment 880 760 Intangible assets 400 510 1,280 1,270 Current assets Inventory 350 420 Trade receivables 808 372 Interest receivable 5 3 Short term deposits 32 120 Bank 15 1,210 75 990 Total assets 2,490 2,260 Share capital and reserves Ordinary shares of $1 each 300 200 Reserves Share premium 60 nil Revaluation reserve 112 45 Retained earnings 1,098 1,270 1,165 1,210 1,570 1,410 Non-current liabilities 12% loan note nil 150 8% variable rate loan note 160 nil Deferred tax 90 250 75 225 Current liabilities Trade payables 530 515 Bank overdraft 125 nil Taxation 15 110 670 625 Total equity and liabilities 2,490 2,260 The following supporting information is available: i. Details relating to the non-current assets are: Property, plant and equipment at: 31 March 2023 31 March 2022 Cost/ Valuation Depreciation Carrying value Cost/ Valuation Depreciation Carrying value $m $m $m $m $m $m Land and building s 600 12 588 500 80 420 Plant 440 148 292 445 105 340 880 760 - ABC revalued the carrying value of its land and buildings by an increase of $70 million on 1 April 2022. On 31 March 2023 ABC transferred $3 million from the revaluation reserve to retained earnings representing the realization of the revaluation reserve due to the depreciation of buildings. - During the year ABC acquired new plant at a cost of $60 million and sold some old plant for $15 million at a loss of $12 million. - There were no acquisitions or disposals of intangible assets. ii. The following extract is from the draft statement of profit or loss for the year to 31 March 2023: $m $m Operating loss (32) Interest receivable 12 Finance costs (24) Loss before tax (44) Income tax repayment claim 14 Deferred tax charge (15) (1) Loss for the period (45) Note The finance costs are made up of: Interest expenses (18) Penalty cost for early redemption of fixed rate loan (6) (24) iii. The short-term deposits meet the definition of cash equivalents. iv. Dividends of $25 million were paid during the year. Required: a) As far as the information permits, prepare a statement of cash flows for ABC for the year to 31 March 2023 in accordance with IAS 7 Statements of cash flows. (20 marks) b) In recent years many analysts have commented on a growing disillusionment with the usefulness and reliability of the information contained in some companies statements of profit or loss and other comprehensive income. Required: Discuss the extent to which a companys statement of cash flows may be more useful and reliable than its statement of profit or loss and other comprehensive income. (5 marks)