IAS 7 Statement of Cash Flows prescribes how to present information in a statement of cash flows about how an entity’s cash and cash equivalents changed during the period. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.
The statement classifies cash flows during a period into cash flows from operating, investing and financing activities:
Investing and financing transactions that do not require the use of cash or cash equivalents are excluded from a statement of cash flows but separately disclosed. IAS 7 Statement of Cash Flows requires an entity to disclose the components of cash and cash equivalents and to present a reconciliation of the amounts in its statement of cash flows with the equivalent items reported in the statement of financial position.
IAS 7 Statement of Cash Flows is Copyright: IFRS Foundation
Statement of Cash Flows
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