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paragraph 96 of IAS 1 (International Financial reporting Standard 2005), the
statement of changes in equity should present the following:
•
Profit or Loss of the period
•
Each
item
listed as
income and expense
for the period, should be
recognized
directly
in
equity
and
the
total
of
these
items
as
required
by
the other standard or by interpretation
•
The total
income
and
expense
for
the
period
should
present
separately
the total amounts being allocated to equity holder of the parent and to
minority interest
•
Last but not least, for every component of equity, any correction of errors
and the effect of changes in accounting policies should be recognized in
accordance with IAS 8.
2.1.4 Statement of Cash Flow
Based on Hoggett, Edwards and Medlin (2003, p.940) the purpose of cash flow
statement
is to report the cash flow
which include the cash inflows and outflow
classified
by
operating,
investing
and financing
activities.
On
the
other
hand
when refer to importance of the statement of cash flow, according to Horngren,
Sundem and
Elliot (2002, p.407) statement of cash
flow plays a
vital role
in an
enterprise
since
it
shows
the
relationship
of net
income
to
changes
in
cash
balances. In addition, statement of cash flow provides external users with
useful information which enable them to measure the enterprise ability to fulfill
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