IAS 7Chapter 3Lesson 4
Financing activities
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Financing cash flows show the money contributed and returned by shareholders and lenders: share issues and buybacks, loan drawdowns and repayments, lessee payments that reduce the lease liability. Presenting them separately helps predict claims on future cash flows by providers of capital. The amounts are derived from debt balances, isolating non-cash changes.
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Learning objectives
- Identify financing cash flows: shares, borrowings, repayments, lease liability.
- Calculate repayments, issue proceeds and the capital element of lease payments.
- Link drawdown, issue and lease payment entries to cash flows.