Question.1

The cash flows statement is one of the most important statements prepared by the accountant.

There are two main methods or approaches to prepare this statement:

Direct method

Indirect method

ou have to explain in more detail:

1. The differences between the two methods

2. Giving a full example for each method

3. The steps for preparing this statement under each method

4. Which method is preferred by the corporations and why

5. In your answer, try to support by using IFRS 16 related to cash flows statement