Major advantages of preparing a statement of cash flow, Financial Management

QUESTION 1

Part A

i) Define the terms finance lease and operating lease and explain how you would distinguish between the two leases

ii) When accounting for finance leases, accountants prefer to overlook legal framework in favour of commercial substance

Part B

i) State the major advantages of preparing a statement of cash flow

ii) Discuss briefly the formal process of International Financial Reporting Standards (IFRS) setting

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