Chapter 38

Statement of cash flows

1 Introduction

1.1 Definitions used in IAS 7

2 Objective and Scope of IAS 7

2.1 Objective

2.2 Scope

3 Cash and Cash Equivalents

3.1 Policy for determining components of cash equivalents

3.2 Components of cash and cash equivalents

3.2.1 Demand deposits and short-term investments

3.2.2 Money market funds

3.2.3 Investments with maturities greater than three months

3.2.4 Bank overdrafts

3.3 Reconciliation with balance sheet items

3.4 Restrictions on the use of cash and cash equivalents

4 Presentation of the Statement of Cash Flows

4.1 Cash flows from operating activities

4.1.1 The direct method

4.1.2 The indirect method

4.2 Cash flows from investing activities

4.2.1 Property, plant and equipment held for rental

4.2.2 Cash flows relating to costs intended to generate future income

4.2.2.A Cash flows for service concession arrangements

4.3 Cash flows from financing activities

4.4 Allocating items to operating, investing and financing activities

4.4.1 Interest and dividends

4.4.2 Taxes on income

4.4.3 Sales taxes and other non-income tax cash flows

4.4.4 Cash flows from factoring of trade receivables

4.4.5 Treasury shares

4.4.6 Cash flows on derivative contracts

4.5 Exceptional and other material cash flows

4.6 Gross or net presentation of cash flows

4.7 Foreign currency cash flows

4.7.1 Entities applying the direct method

4.7.2 Entities applying the indirect method

4.7.2.A Foreign currency operating transactions settled in the period

4.7.2.B Unsettled ...

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