PAS 7

Statement of
Cash Flows
 Cash vs.
Accrual

Accrual to
Cash

Statement of
Cash Flows

Cash to
Accrual
At the end of this session,
you should be able to: 
State the significance of the
information presented in the
Statement of Cash Flows
Differentiate Cash Basis from
Accrual Basis

Know the different formulas

for Cash Basis and Accrual
Basis

Convert Cash Basis

Information to Accrual Basis

Convert Accrual Basis

Information to Cash Basis
At the end of this session,
you should be able to: 
State the significance of the
information presented in the
Statement of Cash Flows

Differentiate Cash Basis from
Accrual Basis

Know the different formulas

for Cash Basis and Accrual
Basis

Convert Cash Basis

Information to Accrual Basis

Convert Accrual Basis

Information to Cash Basis
At the end of this session,
you should be able to: 
State the significance of the
information presented in the
Statement of Cash Flows

Differentiate Cash Basis from
Accrual Basis 
Know the different formulas
for Cash Basis and Accrual
Basis

Convert Cash Basis

Information to Accrual Basis

Convert Accrual Basis

Information to Cash Basis
At the end of this session,
you should be able to: 
State the significance of the
information presented in the
Statement of Cash Flows

Differentiate Cash Basis from
Accrual Basis 
Know the different formulas
for Cash Basis and Accrual
Basis

Convert Cash Basis
Information to Accrual Basis

Convert Accrual Basis

Information to Cash Basis
At the end of this session,
you should be able to: 
State the significance of the
information presented in the
Statement of Cash Flows

Differentiate Cash Basis from
Accrual Basis 
Know the different formulas
for Cash Basis and Accrual
Basis

Convert Cash Basis
Information to Accrual Basis

Convert Accrual Basis
Information to Cash Basis
At the end of this session,
you should be able to: 
State the significance of the
information presented in the
Statement of Cash Flows

Differentiate Cash Basis from
Accrual Basis 
Know the different formulas
for Cash Basis and Accrual
Basis

Convert Cash Basis
Information to Accrual Basis

Convert Accrual Basis
Information to Cash Basis 
 CASH BASIS ACCRUAL BASIS

Recognized when paid Recognized when

or collected, regardless earned or incurred,

of when it is incurred regardless of when it is

or earned. paid or collected.

 CASH BASIS ACCRUAL BASIS

SALES SALES

Cash sales + Collection Cash sales +

of Trade Accounts Sales on Account
Receivable
 CASH BASIS ACCRUAL BASIS

PURCHASES PURCHASES

Cash purchases + Cash purchases +

Payments to Trade Purchases on Account
Creditors
 CASH BASIS ACCRUAL BASIS

INCOME OTHER THAN SALES INCOME OTHER THAN SALES

Amounts received are Amounts earned are

considered as income considered as income
regardless of when regardless of when
earned. received.
 CASH BASIS ACCRUAL BASIS

EXPENSES EXPENSES

Amounts paid are Amounts incurred are

treated as expenses treated as expenses
regardless of when regardless of when
incurred. paid.
 CASH BASIS ACCRUAL BASIS

DEPRECIATION DEPRECIATION

Provided normally Provided normally

 CASH BASIS ACCRUAL BASIS

BAD DEBTS BAD DEBTS

No bad debts are Doubtful accounts

recorded because are treated as bad
trade AR is not debts.
recognized.
Cash to Accrual
Accrual to Cash
Accounts Receivable/ Notes Receivable

Beg. End.

Credit sales Collections

or accrual Sales returns, discounts,
revenue or allowances

Accounts written off

Trade NR discounted
Accounts Payable/ Notes Payable

End. Beg.

payments Credit purchases

purchase returns,
discounts, or
allowances
 Accrual Income
(Prepaid Income, beg.)
Prepaid Income end.
Other Accrued Income beg.
Income

(Accrued Income end.)

Cash Income
 Accrual Expenses
(Prepaid Expenses, beg.)
Prepaid Expenses end.
Other Accrued Expenses beg.
Expenses

(Accrued Expenses end.)

Cash Expenses