Page 300 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 18

Presentation

IAS 7 Statement of Cash Flows requires companies to prepare a statement of cash
flows as part of their annual financial statements. The format should be as follows:

Statement of cash flows for the year ended….. $ $
Cash flows from operating activities

Cash generated from operations X
Interest paid (X)

Tax paid (X)
–––

Net cash from operating activities X
Cash flows from investing activities

Purchase of non-current assets (X)
Proceeds from sale of non-current assets X

Interest received X

Dividends received X
Net cash from investing activities X

Cash flows from financing activities
Issue of shares X

Loan repaid (X)
Loan issued X

Dividends paid (X)
–––

Net cash from financing activities X
–––

Net increase/decrease in cash and cash equivalents X

Cash and cash equivalents b/f X
–––
Cash and cash equivalents c/f X

294