CERTYNEX IFRS ACADEMY

Why may a reconciliation between cash in the statement of cash flows and the statement of financial position be needed?

Because the statement is prepared at market value, whereas the statement of financial position uses historical cost.

Because the statement excludes cash on hand, which remains presented among the current assets of the statement of financial position.

Because cash in the statement may include items presented in other lines, such as an overdraft or a short-term investment.

Because the reconciliation may replace the statement when the entity has few cash flows.