Scribd Logo
Upload

Welcome to Scribd!

  • 5 views

    1-Cash Flows

    Uploaded by

    ahmedfouad0712
    This document summarizes the direct and indirect methods for preparing a statement of cash flows under IAS 7. It outlines the key components of operating, investing, and financing cash flows under each method. The direct method shows actual cash receipts and payments, while the indirect method reconciles net income to net cash flow from operating activities by adjusting for non-cash items and changes in working capital. Both methods require classification and disclosure of cash flow activities into the three categories.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    1-Cash Flows

    Uploaded by

    ahmedfouad0712
    5 views1 page
    This document summarizes the direct and indirect methods for preparing a statement of cash flows under IAS 7. It outlines the key components of operating, investing, and financing cash flows under each method. The direct method shows actual cash receipts and payments, while the indirect method reconciles net income to net cash flow from operating activities by adjusting for non-cash items and changes in working capital. Both methods require classification and disclosure of cash flow activities into the three categories.

    Original Description:

    Cheat cheats for cash flow - IFRS

    Original Title

    1-Cash flows

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document summarizes the direct and indirect methods for preparing a statement of cash flows under IAS 7. It outlines the key components of operating, investing, and financing cash flows under each method. The direct method shows actual cash receipts and payments, while the indirect method reconciles net income to net cash flow from operating activities by adjusting for non-cash items and changes in working capital. Both methods require classification and disclosure of cash flow activities into the three categories.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    5 views1 page

    1-Cash Flows

    Uploaded by

    ahmedfouad0712
    This document summarizes the direct and indirect methods for preparing a statement of cash flows under IAS 7. It outlines the key components of operating, investing, and financing cash flows under each method. The direct method shows actual cash receipts and payments, while the indirect method reconciles net income to net cash flow from operating activities by adjusting for non-cash items and changes in working capital. Both methods require classification and disclosure of cash flow activities into the three categories.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    IAS 7 Statement of Cash flows

    Indirect Method Direct Method

    A. Cash flow from operating activities A. Cash flow from operating activities

    Profit before tax Add: Cash received from customers


    Add: Depreciation/ Amortization Less: Cash paid to and on behalf of staff
    Add: Finance cost Less: Cash paid to suppliers
    Less: Investment Income Less: Cash paid for other operating expenses
    Less/Add: (Gain)/Loss on sale of NCA
    Less: Government Grant amortization/ Income Profit before Working Capital changes
    Add/(Less): Increase/(Decrease) in provision Add/(Less): Decrease/(Increase) in Receivables/Inventory
    Add/(Less): Increase/ (Decrease) in Payables
    Profit before Working Capital changes
    Add/(Less): Decrease/(Increase) in Receivables/Inventory Profit from operations
    Add/(Less): Increase/ (Decrease) in Payables Less: Interest paid
    Less: Tax paid
    Profit from operations Less: Pension contribution paid to defined benefit scheme
    Less: Interest paid
    Less: Tax paid Net cash flow from operating activities
    Less: Pension contribution paid to defined benefit scheme

    Net cash flow from operating activities

    B. Cash flow from investing activities B. Cash flow from investing activities

    Add: Sale proceeds from NCA Add: Sale proceeds from NCA
    Less: Purchase of NCA Less: Purchase of NCA
    Add: Investment Income received (Rent, Dividend, Interest) Add: Investment Income received (Rent, Dividend, Interest)
    Add: Grant received Add: Grant received
    Net cash flow from investing activities Net cash flow from investing activities
    C. Cash flow from financing activities C. Cash flow from financing activities

    Add: Issue of Shares/ Loan notes Add: Issue of Shares/ Loan notes
    Less: Payment of Loans Less: Payment of Loans
    Less: Dividend paid Less: Dividend paid
    Less: Lease liability payments Less: Lease liability payments
    Net cash flow from financing activities Net cash flow from financing activities

    Net increase or decrease in cash & Cash equivalents Net increase or decrease in cash & Cash equivalents
    Add: Opening cash & Cash equivalents Add: Opening cash & Cash equivalents

    Closing Cash & Cash equivalents Closing Cash & Cash equivalents

    ahmad_fouad18@yahoo.com 64ec132db42d54e1560b2cba

    You might also like