1.AASB 107 only allows the reporting of gross cash flows in the statement of cash flows.’

Evaluate this statement.  2 AASB 107 allows two methods of reporting cash flows from operating activities – the direct and indirect methods.

Required

(a) Compare and contrast these two methods.

(b) The use of which method is ‘encouraged’ by AASB 107? Explain why this might be

the case.  Outline the arguments for and against reporting segment data.

3. ‘Reporting of segment data may have a negative impact on corporate innovation and

experimentation.’ Discuss.

4. ‘Reporting segment data involves a trade-off between reliability and cost.’ Discuss.

5.How does AASB 8 define an operating segment?

5 Are there any shortcomings to the approach adopted by AASB 8 ‘Operating Segments’

in identifying operating segments?  6 What is a highlights statement? Why do companies publish highlights statements?