IFRS Accounting Standards in Practice 2024-2025: IAS 7 Statement of Cash Flows 2 Table of Contents 1. [...] Definition of cash and cash equivalents. [...] 6 2.6 Short-term credit lending and cash and cash equivalent classification. [...] Restricted cash and cash equivalent balances – disclosure requirements. [...] Classification of cash flows as operating, investing or financing.
- Pages
- 39
- Published in
- Australia
Table of Contents
- 1. Introduction 4
- 2. Definition of cash and cash equivalents 5
- 2.1. Demand deposits 5
- 2.2. Short term maturity 6
- 2.3. Investments in equity instruments 6
- 2.4. Changes in liquidity and risk 6
- 2.5 Cryptocurrencies 6
- 2.6 Short-term credit lending and cash and cash equivalent classification 7
- 3. Restricted cash and cash equivalent balances – disclosure requirements 8
- 3.1. Interaction with IAS 1 8
- 4. Classification of cash flows as operating, investing or financing 9
- 4.1. Operating activities 9
- 4.2. Investing activities 9
- 4.3. Financing activities 9
- 4.3.1. Disclosure of changes in liabilities arising from financing activities 10
- 4.3.2. Supplier finance arrangements 11
- 4.4. Classification of interest and dividends 13
- 4.5. Common classification errors in practice 14
- 5. Offsetting cash inflows and outflows in the statement of cash flows 16
- 5.1. Effect of bank overdrafts on the carrying amount of cash and cash equivalents 16
- 5.2. Refinancing of borrowings with a new lender 17
- 6. Presentation of operating cash flows using the direct or indirect method 18
- 7. Income taxes and sales taxes 19
- 8. Foreign exchange 20
- 8.1. Worked example – foreign currency translation 20
- 9. Group cash pooling arrangements in an entity’s separate financial statements 23
- 10. Securities and loans held for dealing or trading 25
- 11. Classification of cash flows arising from a derivative used in an economic hedge 26
- 12. Revenue from Contracts with Customers 27
- 13. Leases 28
- 13.1. Payments made on inception of a lease 28
- 13.2. Disaggregation of lease payments 28
- 13.3. Lease payments not included in the measurement of the lease liability 28
- 14. Classification of cash flows arising from business combinations 29
- 14.1. Presentation and disclosure of cash paid / acquired in a business combination 29
- 14.2. Transaction costs 29
- 14.3. Deferred and contingent consideration 29
- 15. Cash flows from discontinued operations 31
- 15.1. Worked example – Discontinued operations not disposed of at the entity’s reporting date 31
- 15.2. Worked example – Discontinued operations disposed of in full during the reporting period 34
