The IFRS has implemented IAS 1 - Presentation of financial statements, and IAS 7 - Statement of cash flows to outline the requirements for the presentation of general purpose financial statements. The standards also provide guidelines for the structure and minimum requirements for their content. These financial statements are intended to serve users who are not in a position to require financial statements tailored to their particular information needs.

Required:

Discuss the importance of the above statement as a part of the financial reporting to external users of financial statements relative to:

(i) Statement of cash flows

(ii) Statement of financial position (Balance Sheet).