Ias 7
Ias 7
Ias 7
Objectives
Scope
Presentation
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Objectives
The objective of IAS 7 is to provide the information
Scope
Applies to all entities-regardless of the nature of
entitys activity.
Importance
To show that profits are being realized.
To pay dividends.
To finance further investment.
Presentation
A statement of cash flows is a list of cash in and
cash out reconciling opening and closing cash
balances.
Classification
or
Indirect method
x
(x)
Interest paid
(x)
(x)
Adjustments for:
Depreciation
Investment income
Interest expense
x
(x)
x
x
(x)
x
(x)
X
Statement of cashflows
Cash flows from operating activities(direct or indirect
method)
(x)
x
x
x
x
x
(x)