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IAS 7Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5

Version of this content

IAS 7 Statement of Cash Flows — wording before IFRS 18Applicable today

Applies to annual periods beginning before January 1, 2027.

Mission · workpaperWorkpaper · IAS 7L2 · Intermediate

Documents

Comparative balances

Schedule

Comparative balances

Balances at 31 December 20X4 and 20X5 (EUR): trade receivables 640,000 and 715,000; inventories 820,000 and 905,000; trade payables 510,000 and 548,000; employee benefit payables 82,000 and 95,000; current tax payable 30,000 and 25,000. No interest payable at either date.

Statement of cash flows worksheet

Rebuilding a distributor's receipts and payments (direct method)

4 documents9 sections to document
0 / 6 sections completed
Guided mode

Section 1 of 9

Objective

In progress
Section brief
What to document
The engagement, its scope and the working mode chosen.
Why
A workpaper answers one precise question: framing it avoids off-topic work.
How
Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
Expected result
You know which question the workpaper must settle, and for which reporting date.
Your role
Preparer of the IAS 7 workpaper
Level
Intermediate
Estimated time
≈ 60 min
Progress
0 / 5 steps done (review excluded)

Context

Maison Ternaval SA (fictitious entity) distributes professional kitchen equipment. Management wishes to present the 20X5 operating cash flows under the direct method, which the standard encourages, by rebuilding receipts and payments from the statement of profit or loss and the changes in balances.

Assignment

Statement of cash flows worksheet

Purpose of the workpaper

From the opening and closing statements of financial position, the statement of profit or loss and the additional information, rebuild the operating section with the indirect method (starting point used: profit before tax, wording before IFRS 18) and, where the data allow, with the direct method, derive the investing and financing cash flows from the balances, classify interest, dividends and taxes under the entity's method, leave out non-cash transactions, then reconcile the net change with opening and closing cash. Negative subtotals are net outflows.

Questions of the file covered by this workpaper

  • Compute the cash received from customers.
  • Compute the purchases of the period and the cash paid to suppliers.
  • Compute the cash paid to employees.
  • Present the operating section down to the net cash flow and check it with the indirect method.
  • Present the entries for the payment of tax and interest.

Documents in the file

Open the documents to pick out the relevant information.

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