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Cach Flow

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Cach Flow
Overview
IAS 7 Statement of Cash Flows requires an entity to present a statement of cash flows as an integral part of its primary financial statements. Cash flows are classified and presented into operating activities (either using the 'direct' or 'indirect' method), investing activities or financing activities, with the latter two categories generally presented on a gross basis. IAS 7 was reissued in December 1992, retitled in September 2007, and is operative for financial statements covering periods beginning on or after 1 January 1994.

History of IAS 7
June 1976 October 1977 July 1991 December 1992 1 January 1994 6 September 2007 Exposure Draft E7 Statement of Source and Application of Funds IAS 7 Statement of Changes in Financial Position Exposure Draft E36 Cash Flow Statements IAS 7 (1992) Cash Flow Statements Effective date of IAS 7 (1992) Retitled from Cash Flow Statements to Statement of Cash Flows as a consequential amendment resulting from revisions to IAS 1 IAS 7 amended by Annual Improvements to IFRSs 2009 with respect to expenditures that do not result in a recognised asset. Effective date for amendments from IAS 27(2008) relating to changes in ownership of a subsidiary Effective date of the April 2009 revisions to IAS 7

16 April 2009

1 July 2009

1 January 2010

Related Interpretations o None

Amendments under consideration by the IASB o Research project - Disclosure framework

Summary of IAS 7
Objective of IAS 7 The objective of IAS 7 is to require the presentation 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 according to operating, investing, and financing activities.

Fundamental principle in IAS 7 All entities that prepare financial statements in conformity with IFRSs are required to present a statement of cash flows. [IAS 7.1] The statement of cash flows analyses changes in cash and cash
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