Preparing Statement of Cash Flows from Taoist Perspectives

Yu-Je Lee (), Jie He, Mei-Fen Wu, Ying-Qing Li and Ching-Ho Chen5
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Yu-Je Lee: Takming University of Science and Technology, Taipei City
Jie He: budget division, Department of Finance, Qing Hai Province, China
Mei-Fen Wu: Takming University of Science and Technology, Taipei City
Ying-Qing Li: Guangzhou Hengyun Enterprises Holding Ltd., China
Ching-Ho Chen5: CPA, Taipei City

Journal of Business & Management (COES&RJ-JBM), 2013, vol. 1, issue 2, 50-58

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.

Keywords: philosophical perspectives of Taoism; indirect method; cash flow statement. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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