CERTYNEX IFRS ACADEMY

Brume SA, which used to start from profit before tax (EUR 840,000) to reconcile its operating cash flows under the indirect method, moves to IFRS 18. What is its new starting point?

Profit for the year, after financing, income taxes and discontinued operations.

Profit before tax, which remains the starting point of operating cash flows.

Profit before financing and income taxes, a specified subtotal.

The "operating profit" subtotal of the statement of profit or loss.