IAS-7 Statement of Cash Flows Part 1 CH 16
IAS-7 Statement of Cash Flows Part 1 CH 16
IAS-7 Statement of Cash Flows Part 1 CH 16
Part 1
Chapter 16
• Revenue producing activities • Acquisitions and disposals • Change the size and
• Key indicator- Shows of long term assets and other composition of the
whether operations can investments contributing equity and
generate enough cash • Include transactions related borrowings
• Include cash receipts from to PPE, intangibles, • Include transactions related
sale of goods/ services, equity/debt instruments to issuance/redemption of
royalties & fees AND cash AND loans to other entities new shares, loans/notes
payments to employees, AND finance lease
suppliers and tax authorities
Definitions
Including overdrafts Current bank accounts • Convertible into known amount of cash
• Subject to an insignificant risk of
changes in value
• Maturity should be within 3 months
from date of acquisition
• Eg: government bonds
Analysis of cash & Cash Equivalents
Statement of Cash flows- Format
add
Statement of Cash flows
add
Balance b/f
+ Additions (bal. fig.)
Profit on disposal + Revaluations
= Proceeds ─ Carrying Value ─ Depreciation
─ Disposal
= Balance c/f
1. Read the requirements noting the year end dates (Bal. b/f and bal c/f)
2. Statements of cash flow headings
• Operating activities, Investing activities, Financing activities and Cash & Cash equivalents