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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 statements of financial position (extracts)

Schedule

Comparative statements of financial position (extracts)

At 31 December 20X4 then 20X5 (EUR): trade receivables 1,120,000 and 1,210,000; inventories 860,000 and 815,000; operating trade payables 640,000 and 600,000; property, plant and equipment 3,200,000 and 3,450,000; borrowings 900,000 and 780,000; interest payable 12,000 and 18,000; current tax payable 60,000 and 70,000; cash and cash equivalents 214,000 and 300,000. The amount owed to the supplier of the milling machine is in other payables, not in operating trade payables.

Statement of cash flows worksheet

An industrial SME's statement under the indirect method: sale of a machine, provisions and tax

5 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

Fonderie Ardanel SA (fictitious entity) manufactures castings. It prepares its 20X5 statement of cash flows under the indirect method. You prepare the worksheet from the comparative statements, the statement of profit or loss and the notes.

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 effect of the changes in working capital.
  • Compute the non-cash items.
  • Compute the interest paid.
  • Compute the tax paid.
  • Determine the cash generated from operations and the net operating cash flow.
  • Compute the proceeds from the sale of the press.
  • Compute the cash paid to purchase property, plant and equipment.
  • Assemble the statement and reconcile cash.
  • Present the entries for the disposal, the payment of tax and interest, the purchase and the dividend.

Documents in the file

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