The statements of financial position of Maytix as at 31 October 2005 and 31 October 2004 are as follows:
The statement of comprehensive income of Maytix for the year ended 31 October 2005 is as follows:
(i) The ‘Statement of changes in equity’ disclosed a dividend paid figure of $1,500,000 during the year to 31 October 2005.
(ii) The non-current asset schedule revealed the following details:
Property: Additions cost $1,000,000.
(a) Prepare the Cash Flow Statement of Maytix for the year ended 31 October 2005. Use the format required by IAS 7 ‘Cash Flow Statements’ and show operating cash flows using the ‘indirect method’.
(b) Describe the additional information that would be included in a cash flow statement showing operating cash flows using the direct method and discuss the proposition that such disclosures be made compulsory under IAS 7.