IAS 7 · Case studies (Step 3 of 5)
Practical case
Version of this content
IAS 7 Statement of Cash Flows — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Lustrane SA, a fictitious company that assembles and distributes electric bikes (12 leased stores, one assembly workshop), 180 employees, IFRS financial statements, year end 31 December, amounts in euros. In N+1, it acquires Alpenrad AG, a Swiss frame maker.
L1 · Guided · Year N — year end at 31 December N
You progressively build Lustrane's statement of cash flows: cash and classification (level 1, N), indirect method and working capital (level 2, N), investing, financing, leases and debt reconciliation (level 3, N+1), then the consolidated statement with the acquisition of a Swiss subsidiary, foreign exchange and a supplier finance arrangement (level 4, N+1). Figures, rates and the classification policies for interest and dividends are case data; choices left open by the standard are presented as options, never as obligations; judgements are flagged. Teaching based on the IAS 7 wording before IFRS 18. Teaching assumption: rounded amounts.
Standard involved: IAS 7 Statement of Cash Flows. Lustrane is preparing its first statement of cash flows. First define cash and cash equivalents, then classify the movements of the year. The questions are guided.
Fundamental level: the method, help and references are shown.
Method
File checklist
2 / 6 stages reached
Context · Dated fact of the file
Lustrane SA, a fictitious company that assembles and distributes electric bikes (12 leased stores, one assembly workshop), 180 employees, IFRS financial statements, year end 31 December, amounts in euros. In N+1, it acquires Alpenrad AG, a Swiss frame maker.
Initial event · L1·Year N — year end at 31 December N · Current stage
Standard involved: IAS 7 Statement of Cash Flows. Lustrane is preparing its first statement of cash flows. First define cash and cash equivalents, then classify the movements of the year. The questions are guided.
Pieces added
New period · L2·Year N — operating cash flow · Upcoming: unlocks after the current stage
New period · L3·Year N+1 — Lustrane SA accounts · Upcoming: unlocks after the current stage
New period · L4·Year N+1 — group consolidated accounts · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
2 documents to work from at this level.
Document 1Supporting document
| Item | 31/12/N−1 | 31/12/N |
|---|---|---|
| Store tills | 20,000 | 15,000 |
| Current accounts | 480,000 | 610,000 |
| 3-month deposit taken out on 1/12/N (maturity 28/2/N+1) | — | 300,000 |
| 12-month deposit taken out on 1/7/N (maturity 30/6/N+1) | — | 400,000 |
| Listed shares of a battery supplier, bought in N | — | 150,000 |
| Bank B: account repayable on demand, balance alternating every month between positive and negative | −60,000 | −90,000 |
First level: all the data is in the brief and the pieces of this level.
5 parts to answer, marked when you submit the level.
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Which items in exhibit 1 form part of cash and cash equivalents at 31/12/N?
Drag each item into its category, or tap the category under the item.
Store tills
Current accounts
3-month deposit
12-month deposit
Supplier's listed shares
Bank B account (overdraft)
4 more questions will appear once the current question is complete.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Answer every part to submit the level and see the conclusion.
Normative references