IAS 7Chapter 3Lesson 1
The principle: three activities, one change in cash
Step 1 of 8Learning objectives
Go deeper+1 point of attention
The statement presents the cash flows for the period classified by operating, investing and financing activities, in the manner most appropriate to the entity's business. A single transaction may produce cash flows of different kinds: a loan repayment contains principal (financing) and interest (classified under the entity's policy). The sum of the three subtotals explains the change in cash.
16 minNot started
Learning objectives
- Explain the classification into three activities and the presentation suited to the business.
- Split a single payment and calculate the net change in cash from the three subtotals.