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WorkpaperIAS 7 — Statement of Cash FlowsL1 · L2 · L3

Cash flow classification matrix

21 missions9 sections to document25 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

For each transaction of the period (one instance per transaction), describe the facts and the amount paid or received, check whether it is a cash flow, apply the definitions and examples of the three activities, identify the flows of a single payment that may be classified differently, apply the classification rules for interest, dividends and taxes (entity status given by the case) and the conditions for net presentation, then justify the classification and the disclosures.

9 sections · 23 blocks · 2 calculations · 0 entries

  • IAS 7 §6
  • IAS 7 §9
  • IAS 7 §14
  • IAS 7 §15
  • IAS 7 §16
  • IAS 7 §17
  • IAS 7 §43
  • IAS 7 §12
  • IAS 7 §21
  • IAS 7 §22
  • IAS 7 §23
  • IAS 7 §23A
  • IAS 7 §31
  • IAS 7 §33A
  • IAS 7 §34A
  • IAS 7 §34B
  • IAS 7 §34C
  • IAS 7 §34D
  • IAS 7 §35
  • IAS 7 §36
  • IAS 7 §37
  • IAS 7 §38
  • IAS 7 §42A
  • IAS 7 §42B
  • IAS 7 §11
  • IAS 7 §32

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

21 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Fifteen transactions to classify: operating, investing, financing or outside the statement
Case tasks documented here
  • Classify the fifteen transactions and identify those that do not appear in the statement.
  • Identify the interest element of the loan instalment and of the rent, and the related principal.
1

Inputs

Inputs

  • Transaction examined: facts, counterparty, date and means of settlement

    TextRequired

    BANK_LOAN_INSTALMENT

  • The entity's principal revenue-producing activities

    Text

    DISTRIBUTION_OF_HANDLING_EQUIPMENT

  • Status of the entity (main business of investing in assets or financing customers, para. 34B) and, where relevant, profit or loss classification or policy choice (case datum)

    Text

    NOT_A_PARAGRAPH_34B_ENTITY_HANDLING_EQUIPMENT_DISTRIBUTOR

  • Amount received or paid

    Number

    130,000

    Case data: amount actually received or paid; a non-cash transaction has a nil amount and is disclosed under para. 43.

  • Interest portion included in the payment

    Number

    30,000

  • Gross receipts of the category

    Number

  • Gross payments of the category

    Number

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Definitions and examples of the activities

Analysis

IAS 7 §6IAS 7 §9IAS 7 §14IAS 7 §15IAS 7 §16IAS 7 §17IAS 7 §43

  • Points reviewed

    ChecklistRequired

    • Inflow or outflow of cash or cash equivalents (not an internal movement)
    • Principal revenue-producing activities and residual activities
    • Securities and loans held for dealing or trading: operating
    • Expenditures resulting in a recognised asset; disposals; loans to third parties
    • Equity, borrowings, repayments, principal portion of lease payments
    • Non-cash transaction: excluded from the statement
4

Specific cash flows (wording applicable from 2027)

Analysis

IAS 7 §12IAS 7 §21IAS 7 §22IAS 7 §23IAS 7 §23AIAS 7 §31IAS 7 §33AIAS 7 §34AIAS 7 §34BIAS 7 §34CIAS 7 §34DIAS 7 §35IAS 7 §36IAS 7 §37IAS 7 §38IAS 7 §42AIAS 7 §42B

  • Points reviewed

    ChecklistRequired

    • Single payment that may include differently classified flows (para. 12); interest element identified for the disclosure of para. 32
    • Dividends paid in financing; outside para. 34B, interest paid in financing and interest and dividends received in investing; para. 34B entities: profit or loss classification or policy choice
    • Taxes in operating unless specifically identified
    • Net presentation: on behalf of customers or quick turnover, large amounts, short maturities
    • Equity-accounted investees: only cash flows with the investee
    • Changes in ownership without loss of control: financing
5

Split and net amount (wording applicable from 2027)

Calculations

IAS 7 §12IAS 7 §22

  • Amount excluding the interest portion (principal of a repayment)

    Calculation

    100,000

    Amount received or paid ; − Interest portion included in the payment

  • Net cash flow of the category (where net presentation is permitted)

    Calculation

    0

    Gross receipts of the category ; − Gross payments of the category

6

Classification (wording applicable from 2027)

Judgment

IAS 7 §6IAS 7 §11IAS 7 §31IAS 7 §33AIAS 7 §34AIAS 7 §34BIAS 7 §34CIAS 7 §34DIAS 7 §35IAS 7 §36IAS 7 §22

  • Classification of the transaction

    JudgmentRequired

    Financing activities

    Operating activities / Investing activities / Financing activities / Split between several activities / Not a cash flow of the statement (non-cash or internal movement)

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

  • Interest and dividends: method applied (wording applicable from 2027)

    JudgmentRequired

    Paid (dividends; interest outside para. 34B): financing

    Paid (dividends; interest outside para. 34B): financing / Received (interest and dividends outside para. 34B): investing / Par. 34B entity: following the profit or loss category (para. 34C) / Par. 34B entity: following the accounting policy choice (para. 34D) / Not applicable

    Rule: dividends paid are financing cash flows (para. 33A); outside para. 34B, interest paid is financing and interest and dividends received are investing (para. 34A); a para. 34B entity follows the classification of its income and expenses in profit or loss (para. 34B and 34C) or, if several categories, its policy choice (para. 34D). The status of the entity and the choice are case data.

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

  • Income taxes (wording applicable from 2027)

    JudgmentRequired

    Not applicable

    Operating (general case) / Specifically identified with investing / Specifically identified with financing / Not applicable

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

  • Gross or net presentation

    JudgmentRequired

    Gross (conditions for net not met)

    Gross (conditions for net not met) / Net: cash flows on behalf of customers / Net: quick turnover, large amounts, short maturities / Not applicable

    Rule: investing and financing cash flows are presented gross, except cash flows on behalf of customers or with quick turnover, large amounts and short maturities (para. 21 and 22).

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

7

Presentation and disclosures (wording applicable from 2027)

Disclosure

IAS 7 §31IAS 7 §32IAS 7 §35IAS 7 §36IAS 7 §43

  • Points reviewed

    ChecklistRequired

    • Interest and dividends received and paid presented separately
    • Total interest paid, including interest capitalised
    • Income tax cash flows presented separately
    • Total taxes paid disclosed if split
    • Non-cash transactions disclosed elsewhere
8

Conclusion

Conclusion

  • Classification, presentation and points submitted to the reviewer

    ConclusionRequired

9

Normative references

References

  • Paragraphs cited in this workpaper (verification status shown from the register)

    References

10

Checks and financial statement impact

  • Classification documentedPass
  • Interest and dividends method reviewedPass
  • Taxes reviewedPass
  • Gross or net presentation reviewedPass
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0