Wiley Interpretation and Application of IFRS Standards

6 STATEMENT OF CASH FLOWS

• Introduction
• Scope
• Definitions of Terms
• Background
  • Benefits of Statement of Cash Flows
  • Exclusion of Non-Cash Transactions
  • Components of Cash and Cash Equivalents
• Presentation
  • Classifications in the Statement of Cash Flows
  • Reporting Cash Flows from Operating Activities
    • Direct vs. indirect methods
• Other Requirements
  • Gross vs. Net Basis
  • Foreign Currency Cash Flows
  • Cash Flow per Share
  • Net Reporting by Financial Institutions
  • Reporting Futures, Forward Contracts, Options and Swaps
  • Reporting Extraordinary Items in the Statement of Cash Flows
  • Reconciliation of Cash and Cash Equivalents
  • Acquisitions and Disposals of Subsidiaries and Other Business Units
• Disclosure and Examples
  • Other Disclosures Required or Recommended by IAS 7
  • Changes in Liabilities Arising from Financing Activities
• Consolidated Statement of Cash Flows
• US GAAP Comparison

INTRODUCTION

IAS 7, Cash Flow Statements, became effective in 1994. IAS 7 had originally required reporting entities to prepare a statement of changes in financial position (commonly referred to as a funds flow statement) as part of a complete set of financial statements. The IASB has amended the title of IAS 7 from Cash Flow Statements to Statement of Cash Flows (the title used in the US) as a consequence of the latest revision of IAS 1, Presentation of Financial Statements, itself a result of the IASB and FASB deliberations on the first phase of the Financial Statement Presentation project. The statement ...