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Performance reporting and performance appraisal

1.5 Statement of cash flows

The format of this statement is dictated by IAS 7 Statement of Cash Flows. It requires
that cash flows are presented under one of three headings:

 cash flows from operating activities

 cash flows from investing activities

 cash flows from financing activities.

Statements of cash flow are covered in more detail in Chapter 24.

1.6 Disclosure notes

IAS 1 says that entities must:

 disclose their compliance with IFRS Standards

 disclose the accounting policies used

 disclose key uncertainties

 present disclosure notes in a systematic order.

1.7 Materiality

Material items should be presented separately in the financial statements.

Immaterial items can be aggregated in the financial statements.

An item is material if its omission or mis-statement might influence the
economic decisions of the users of the financial statements. Users are
assumed to have a reasonable knowledge of business.

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