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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 7L4 · Expert

Documents

Comparative consolidated statements of financial position

Schedule

Comparative consolidated statements of financial position

Hestrel group, at 31 December 20X4 then 20X5 (EUR). Assets: property, plant and equipment 8,400,000 and 9,890,000; right-of-use assets 1,200,000 and 1,320,000; goodwill 900,000 and 2,030,000; investment in Lysandre Logistique (associate, equity method) 1,100,000 and 1,160,000; six-month term deposit: nil and 300,000; inventories 3,100,000 and 3,600,000; trade receivables 2,600,000 and 3,050,000; cash and cash equivalents in assets 1,350,000 and 1,130,000; total 18,650,000 and 22,480,000. Liabilities and equity: bank borrowings 4,000,000 and 6,450,000; bank overdrafts 150,000 and 280,000; lease liabilities 1,250,000 and 1,300,000; trade and other payables 2,900,000 and 3,380,000; current tax payable 180,000 and 230,000; interest payable 40,000 and 55,000; provisions 300,000 and 360,000; share capital and premium 3,000,000 and 3,600,000; non-controlling interests 400,000 and 180,000; retained earnings 6,430,000 and 6,645,000.

Statement of cash flows worksheet

File for preparing the consolidated statement of cash flows of a retail group

12 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
Expert
Estimated time
≈ 60 min
Progress
0 / 5 steps done (review excluded)

Context

The Hestrel group (fictitious entity, DIY and garden retail) is closing its 20X5 consolidated financial statements. The year combines the acquisition of Brivaldi SAS, the disposal of Hestrel Atlantique, a purchase of non-controlling interests, new leases, a dollar loan, a US subsidiary, trapped cash and a supplier finance programme. The draft statement does not reconcile with cash. You prepare the file, submitted to the reviewer before sign-off. Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.

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 changes in working capital excluding subsidiaries acquired and disposed of.
  • Compute the non-cash items.
  • Compute the interest paid.
  • Compute the tax paid.
  • Determine the net operating cash flow with the indirect method.
  • Compute the receipts from customers.
  • Compute the payments to suppliers and to employees.
  • Compute the purchases paid and the proceeds from disposals of equipment.
  • Determine the investing and financing cash flows and the net change.
  • Present the entries for the underlying transactions.

Documents in the file

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