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(i) adjustments in the course of the period in inventories and operating receivables and payables; (ii) different non-cash objects; and (iii) different objects for which the money results are investing or financing money flows. The direct methodology provides info which can be helpful in estimating future money flows and which isn’t available beneath the oblique method. Solely expenditures that result in a acknowledged asset within the stability sheet are eligible for classification as investing actions. The separate disclosure of cash flows arising from investing actions is essential because the cash flows represent the extent to which expenditures have been made for sources intended to generate future earnings and cash flows.
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