CERTYNEX IFRS ACADEMY

Sarlane's “direct method” statement shows customer receipts, supplier payments, then “depreciation 150,000” and “provisions charged 30,000” as receipts. What is the error?

Non-cash items have no place among gross cash flows.

These charges should appear in investing.

They should be shown as payments instead of receipts.

There is no error: the direct method uses all expenses, including those with no payment.