Preparing Statement of Cash Flows from Taoist Perspectives
Year: 2013
Type: article
Abstract: The preparation of cash-flow statement under the indirect method involves adjustments of many items. This is a highly complex process prone to errors, due to a lack of philosophical guidance. This paper finds that the concept of natural equilibrium of Chinese Taoism “… is the way of heaven to take from what has in excess in order to make good what is deficient...” can lend intellectual support to the preparation of cash flows statement under the indirect method. This approach will greatly enhance the accuracy of cash flows statement under the indirect method. This paper uses examples to illustrate the process of adjustments in the preparation of cash- flow statement under the indirect method in the context of Taoist philosophy. The results show that the philosophical perspectives of Chinese Taoism can provide strong guidance on these adjustments by achieving both efficiency and efficacy. The assurance of this “win-win” is a testimony to the philosophical contents of Taoism in the context of modern times.
Authors: Yu-Je Lee, Jie He, Mei Fen Wu, Ying Qing Li, Ching Ho Chen
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1528438891