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The depreciation expense in accordance with international accounting standards?

The depreciation expense in accordance with international accounting standards: A - operating cash flow. B - cash flow financing. C - cash flow investment. D - None of the above.

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Question added by Rashad Moursi , Finance Director & Business Development, International Business Transformer Owners Repr. - Hotels , Investment and financial
Date Posted: 2014/06/01
Mohamed Billow
by Mohamed Billow , Financial & Tax Consultant , Mabrook Computers Limited, Hu One Constructions Limited, Aqsa Investment Limited and Hanat Ltd

A is the answer. Depreciation are adjusted in the cash flow statement under the Cash flow from operating activity by adding back to the net profit balance before tax deduction together with other expense/deduction items without actually monetary value exchange/in or out flow i.e Amortization/impairment of intangible items and profit on disposal of Asset/investment are added back or subtracted before effecting changes in working capital and actual tax paid to arrive at Net operating cash in/out flow balance. Sale of investment and disposal of Asset are consider under investing activity/ cash flow statement column with the cash proceed/received each respectively.

Deleted user
by Deleted user

Depreciation is added back to profit before tax as it is NOT A CASH item and this is part of workings to get to the "cash from operations", item so A) is correct, 

Jaishri Navani
by Jaishri Navani , Finance Manager , West Zone Fresh Supermarket LLC

Under IAS 7, cash flow statement depreciation is added back to the net income figure to arrive cash flow from operations. So the answer is:

 

A - Operating cash flow

Abdulla Alajmi
by Abdulla Alajmi , Finance Manager , Kafco

I think C

Muhammad Yousuf Khan
by Muhammad Yousuf Khan , Accountant , Hungerstation

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A  is right answer.

Mohamed Cassin Mohamed Shamir
by Mohamed Cassin Mohamed Shamir , Equity Research Analyst, Executive , Amana Bank PLC

D

Rashad Moursi
by Rashad Moursi , Finance Director & Business Development, International Business Transformer Owners Repr. - Hotels , Investment and financial

B - cash flow financing. 

Tareq Obeidat
by Tareq Obeidat , Chief Accountant , Etmam International Co

D

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

The depreciation expense in accordance with international accounting standards?

 

The depreciation expense in accordance with international accounting standards: A - operating cash flow. 

 

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