Preparing Statement of Cash Flows from Taoist Perspectives

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

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.

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Published
2013-01-01
How to Cite
LEE, Yu-Je et al. Preparing Statement of Cash Flows from Taoist Perspectives. Journal of Business & Management (COES&RJ-JBM), [S.l.], v. 1, p. 50-58, jan. 2013. ISSN 2306-7179. Available at: <http://centreofexcellence.net/index.php/JBM/article/view/265>. Date accessed: 15 oct. 2019.
Section
Articles