IAS 7Chapter 3Lesson 3
Investing activities
Step 1 of 9Learning objectives
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Investing cash flows show what the entity spends on resources intended to generate future income. Only expenditures that result in a recognised asset can be included: acquisitions and disposals of property, plant and equipment and intangible assets (capitalised development included), securities of other entities, loans to third parties, certain derivatives. The amounts are rebuilt from balances, excluding acquisitions without payment.
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Learning objectives
- Determine whether an expenditure may be classified as investing.
- Calculate acquisition payments and disposal receipts from balances.
- Link the acquisition or disposal entry to the cash flow presented.