IAS 7 · Case studies (Step 3 of 5)
Practical case
Version of this content
IAS 7 as amended by IFRS 18
Applies to annual periods beginning on or after January 1, 2027. Early application permitted. Only together with early application of IFRS 18, which is permitted and must be disclosed (IFRS 18, para. C1).
Soldarin SA, a fictitious manufacturer of industrial sensors (210 employees), IFRS financial statements, year end 31 December, amounts in euros. Soldarin has no main business activity of investing or financing customers (case datum). It applies IFRS 18 for the first time for the period beginning 1 January 2027, without early application. In 2028, it acquires Tornelle SAS.
L1 · Guided · Year 2027, year end 31 December 2027
Version applicable to annual reporting periods beginning on or after 1 January 2027 (IAS 7, para. 64; IFRS 18, para. C1); early application permitted only together with IFRS 18. You build Soldarin's statement of cash flows step by step under the version of IAS 7 amended by IFRS 18: cash and classification (level 1, 2027), the indirect method from operating profit, tax paid and completing the statement (level 2, 2027), investing, financing, leases and the reconciliation of debt (level 3, 2028), then a consolidated statement with the acquisition of a subsidiary and an associate (level 4, 2028). Figures, categories in the statement of profit or loss, the status of the entity and the entity's choices are case data; a method or category specific to the case is never presented as imposed by the standard; judgements are flagged. Pedagogical assumption: rounded amounts, balance movements due to ordinary activity.
Standard concerned: IAS 7 Statement of Cash Flows, version amended by IFRS 18. Soldarin prepares its first statement under this version. First delimit cash and cash equivalents, then classify the movements of the year. The questions are guided.
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Method
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Context · Dated fact of the file
Soldarin SA, a fictitious manufacturer of industrial sensors (210 employees), IFRS financial statements, year end 31 December, amounts in euros. Soldarin has no main business activity of investing or financing customers (case datum). It applies IFRS 18 for the first time for the period beginning 1 January 2027, without early application. In 2028, it acquires Tornelle SAS.
Initial event · L1·Year 2027, year end 31 December 2027 · Current stage
Standard concerned: IAS 7 Statement of Cash Flows, version amended by IFRS 18. Soldarin prepares its first statement under this version. First delimit cash and cash equivalents, then classify the movements of the year. The questions are guided.
Pieces added
New period · L2·Year 2027, the operating cash flow and the full statement · Upcoming: unlocks after the current stage
New period · L3·Year 2028, Soldarin SA accounts · Upcoming: unlocks after the current stage
New period · L4·Year 2028, 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 | 31/12/2026 | 31/12/2027 |
|---|---|---|
| Cash on hand | 12,000 | 9,000 |
| Current accounts | 410,000 | 278,000 |
| 3-month deposit opened on 1/12/2027 (maturity 29/2/2028) | — | 150,000 |
| 12-month deposit opened on 1/9/2027 (maturity 31/8/2028) | — | 200,000 |
| Listed shares of a supplier, bought in 2027 (long-term holding) | — | 80,000 |
| Bank B: on-demand account whose balance fluctuates between positive and negative; an integral part of cash management (case datum) | −45,000 | −70,000 |
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 of exhibit 1 are part of cash and cash equivalents at 31/12/2027?
Drag each item into its category, or tap the category under the item.
Cash on hand and current accounts
3-month deposit
12-month deposit
Listed shares of the supplier
Bank B account (overdraft integral to cash management)
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Normative references