Name: Phone:

ID: Date: No.

Phone: No.
4 A statement of cash flow, when used in conjunction with the rest of financial statement, provide information
that enable users to evaluate the changes in net assets of an entity, its financial structure (including its
liquidity and solvency) and its ability to affect the amount and timing of cash flow in order to adapt to
changing circumstances and opportunities. Cash flow statement is useful in assessing the ability of the entity
to generate cash and cash equivalents and enable users to develop models to assess and compare the preset
value of the future cash flowers of different entities. It also enhances the comparability of the reporting
performance by different entities because it eliminates the effects of using different accounting treatment for
the same transactions and events.
Operating activities
13 The amount of cash flow arising from operating activities is a key indicator of extent of which the operating of
the entity has generate sufficient cash flow to repay loans, maintain the operating capability of the entity, pay
dividend and make new investment without recourse to external sources of financing. Information about the
specific components of historical operating cash flow is useful, in conjunction with other information, in
forecasting future operating cash flows.
Interest and dividends
31 Cash flow from interest and dividend received and paid shall each be disclosed separately, each shall be
classified in a consistent manner from period to period as operating, investing or financing activities.
Taxes On income
35 Cash flow arising from taxes on income shall be separately disclosed and shall be classified as cash flows from
operating activities unless they can be specifically identifies, investing activities.
Non-cash transactions
43 Investing and financing transaction that do not require the use for cash or cash equivalents shall be excluded
from a statement of cash flows. Such transaction shall be disclosed elsewhere in the financial statement in a
way that provides all the relevant information about these investing and financing activities.
Investing activities
16 The separate disclosure of cash flows arising from investing activities is important because the cash flow
represent the extent to which expenditure has been made for resources intended to generate future income
and cash flows. Only expenditure that result in a recognized assets in the statement of financial position are
eligible for classification as investing activities. Examples of cash flows arising from investing activities are:
(c) cash payment to acquire equity or debt instrument of other entities and interest in joint ventures (other
than payment for those instruments considered to be equivalent or dealing or trading purposes);
(d) cash receipt from sales of equity or debt instruments of other entities and interest joint ventures (other
than receipts for those instruments considered to be cash equivalents and those held for dealing or
trading purposes);
(e) Cash advances and loans made to other parties (other than advances and loans and loans of a financial instrument);
(f) Cash receipts from the repayment of advance and loans made to order parties (other than advance and
loans of a financial institution);
Financing activities
17 The separate disclosure of cash flow arising from financing activities in important because it is useful in
predicting claims on future cash flows by providers of capital to the entry. Examples of cash flows arising from
financing activities are:
(a) Cash proceeds from issuing share or other equity instruments;
(b) Cash payment to owners to acquire or redeem the entry’s shares;
(c) Cash process from issuing debentures, loans, note, mortgages and other short-term or long-term borrowings;
(d) Cash repayment or amount borrowing; and

Please classify all above activities to operating activities, investing activities, financing activities and non-cash transaction.
-Cash paid dividend…………………………. paragraph………………………..
-Cash received from note receivable more than one year……………………………paragraph…………………………..
-Cash paid to note payable more than one year………………………………………paragraph………………………………
-Interest paid……………………………….paragraph……………………………
-Cash received from dividend……………………………………Paragraph……………………………………