IAS 1 – Presentation of Financial Statements requires the following components for a complete set of financial statements:
IAS 7 Statements of Cash Flows
Statement of Cash Flows: Cash Flow Classifications for IAS 7
There are three ways of classifying cash flows, which we look at in this article.
Cash Flow Classifications
Cash flows should be classified under the following headings:
Reviewing Statements of Cash Flows for IAS 7
During your studies or career, you may be asked to prepare a statement of cash flows and then comment on the statement and the entity’s cash position.
Benefits and Limitations of Cash Flow Statements under IAS 7
In this article we take a look at the benefits and limitations of Cash Flow Statements.
Cash flow statements – benefits
Cash flow information provided in the statement of cash flows can be beneficial, for example:
Statement of Cash Flows: Financing Activities (IAS 7)
The third section of a statement of cash flows is for financing activities.
Statement of Cash Flows: Investing Activities for IAS 7
In this article, we’re looking at the second section of a statement of cash flows which is for investing activities.
Statement of Cash Flows: Introduction to Operating Activities for IAS 7
Operating activities are those activities linked to provision of goods or services by the entity, so the normal trading activities of the entity.
Statement of Cash Flows: Operating Activities – Indirect method for IAS 7
In this article, we look at the Indirect Method of preparing a statement of cash flows.
When the indirect method of presenting the statement of cash flows is used, the net profit or loss for the period is adjusted for the following items:
Statement of Cash Flows: Operating Activities – Direct method for IAS 7
Operating Activities – Direct method
When the direct method of presenting the statement of cash flows is used, the major classes or receipts and payments are listed out, and the final balance of these gives us the net cash flows from operating activities.
Update: IAS 7 Statement of Cash Flows multiple choice quiz
If you’re studying IAS 7 Statements of Cash Flows, why not test your knowledge with our multiple choice quiz? By practicing questions you’ll improve your study and recall, ideal for people who learn best by ‘doing’ rather than just reading. Click below to try the quiz. IAS 7 Statement of Cash Flows Quiz