Answer the following questions by reference to the FASB Codification Accounting

Question

Answer the following questions by reference to the FASB Codification Accounting Standards. Include the appropriate citation reference to your response at the beginning of the response.

Question #1     In preparing a consolidated statement of cash flows, is a firm required to disclose cash flow per share?

Question #2     Firms adopting the direct method to prepare the statement of cash flows often include a reconciliation of net income to net cash flows from operating activities. Is this required, and, if so, how should it be presented?

Explanation / Answer

as per ASC 230-10-45-3 - Statement of Cash flows , A firm is not allowed to show cash flow per share

As per ASC 230-10-45-2 , It is required to include a reconciliation of net income to net cash flows from operating activities .The net effects of transactions that affect net income and operating cash flows in different periods shall be disclosed .

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