Cash flow statement

1) Operating activities

Main revenue-producing activities(principal) of the entity that are not investing or

financing activities, so operating cash flows include cash received from customer and
cash paid to suppliers and employees.

Non-cash item in SOPL

• Depreciation, amortization, impairment

• Gain/loss in fair value of investment property/ FA @ FVTPL
• Gain/loss on disposal of PPE

Profit before tax (from p/l) XX

Adjustments (reversal of non-cash items)
Depreciation Add back
Gain in FV of IP Deduct
Gain or loss on disposal of PPE Deduct/Add
back

Operating profit before working capital changes (From CA and

CL) – no more reversal, cash inflow/outflow?
(Increase)/Decrease in inventory (XX)/XX
(Increase)/Decrease in Receivables (XX)/XX
Increase/(Decrease) in Payables XX/(XX)
Cash generated from operations
Interest paid (XX)
Tax paid (XX)
Cash used/from OA

2) Investing activities (from NCA)

Acquisition and disposal of long-term assets and other investments that are not
considered to be cash equivalent.

*What is cash and cash equivalent? It comprises cash on hand and demand
deposit, together with short-term, highly liquid investment that are readily
convertible to a known amount of cash, and that are subject to insignificant
risk of changes in value. It has maturity of three months or less from date of
acquisition.

Proceed from disposal of PPE XX

Purchase of PPE, IA (XX)
Acquisition of sub, associate (XX)
 Proceeds from disposal of sub XX
Purchase of FA/investments (XX)
Interest/dividend received XX

3) Financing activities (from Equity and NCL)

Activities that alter the equity capital and borrowing structure of the entity.

Repayment of lease (XX)

Proceeds from issuance of shares XX
Proceeds from issuance of bonds XX
Receipt of bank loan XX
Dividend paid (XX)