Page 256 - F3 -FA Integrated Workbook STUDENT 2018-19
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Chapter 19
IAS 7 Statement of cash flows
2.1 Introduction to IAS 7
IAS 7 requires that entities prepare a statement of cash flows as part of their annual
financial statements. The statement of cash flows must be presented using standard
headings to identify the net increase or decrease in cash and cash equivalents in the
accounting period.
Operating Investing Financing
Cash generated Purchase of Share issue
assets
from operations Loan repaid or
Interest paid Sale proceeds received
Tax paid Investment Dividends paid
income
The net increase (or decrease) in cash and cash equivalents for the year is
reconciled with the cash and cash equivalents at the start and at the end of the
reporting period.
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