Maple Co is a public limited company which operates in the United Kingdom. The majority of its business is carried out in Europe and its revenue is in Euros. Most of its raw materials are purchased from Hong Kong where the currency is the Hong Kong dollar.

The company invoices its customers in Euros and insists on payment in Euros. Maple Co also has a subsidiary in Hong Kong.

What currency should the financial statements be presented in?

 Euros

 UK Sterling

 Hong Kong dollars

 Any currency chosen by Maple Co

Which one of the following statements is correct according to IAS 7 Statement of Cash Flows?

 Preparing a statement of cash flows using the direct method gives a different cash flow from operating activities to that using the indirect method

 Cash flows from interest and dividends should be disclosed separately

 A statement of cash flows may be included as a primary statement in an entity’s financial statements, or in the notes to the financial statements

 Financing activities include the acquisition and disposal of long-term assets and other investments not included in cash equivalents