International Accounting Standard 7
Statement of Cash Flows
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 7 Cash Flow Statements was issued by the International Accounting Standards Committee in December 1992. It replaced IAS 7 Statement of Changes in Financial Position (issued in October 1977). In April 2001 the International Accounting Standards Board resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless and until they were amended or withdrawn. Since then, IAS 7 and its accompanying documents have been amended by the following IFRSs: • • • • • • • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (issued December 2003) IAS 21 The Effects of Changes in Foreign Exchange Rates (as revised in December 2003) IFRS 8 Operating Segments (issued November 2006)* IAS 23 Borrowing Costs (as revised in March 2007)* IAS 1 Presentation of Financial Statements (as revised in September 2007)* IAS 27 Consolidated and Separate Financial Statements (amended in January 2008)† Improvements to IFRSs (issued May 2008).*
As a result of the changes in terminology made by IAS 1 in 2007, the title of IAS 7 was changed to Statement of Cash Flows.
effective date 1 January 2009 effective date 1 July 2009
INTERNATIONAL ACCOUNTING STANDARD 7 STATEMENT OF CASH FLOWS
OBJECTIVE SCOPE BENEFITS OF CASH FLOW INFORMATION DEFINITIONS Cash and cash equivalents PRESENTATION OF A STATEMENT OF CASH FLOWS Operating activities Investing activities Financing activities REPORTING CASH FLOWS FROM OPERATING ACTIVITIES REPORTING CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES REPORTING CASH FLOWS ON A NET BASIS FOREIGN CURRENCY CASH FLOWS INTEREST AND DIVIDENDS TAXES ON INCOME INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES CHANGES IN OWNERSHIP INTERESTS IN SUBSIDIARIES AND OTHER BUSINESSES NON-CASH TRANSACTIONS COMPONENTS OF CASH AND CASH EQUIVALENTS OTHER DISCLOSURES EFFECTIVE DATE APPENDICES A B Statement of cash flows for an entity other than a financial institution Statement of cash flows for a financial institution
1–3 4–5 6–9 7–9 10–17 13–15 16 17 18–20 21 22–24 25–28 31–34 35–36 37–38 39–42B 43–44 45–47 48–52 53–55
International Accounting Standard 7 Statement of Cash Flows (IAS 7) is set out in paragraphs 1–55. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 7 should be read in the context of its objective, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
International Accounting Standard 7 Statement of Cash Flows* Objective
Information about the cash flows of an entity is useful in providing users of financial statements with a basis to assess the ability of the entity to generate cash and cash equivalents and the needs of the entity to utilise those cash flows. The economic decisions that are taken by users require an evaluation of the ability of an entity to generate cash and cash equivalents and the timing and certainty of their generation. The objective of this Standard is to require the provision of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows which classifies cash flows during the period from operating, investing and financing activities.
1 An entity shall prepare a statement of cash flows in accordance with the requirements of this Standard and shall present it as an integral part of its financial statements for each period for which financial...
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