IAS 7: Difference between revisions

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IAS 7 is issued by the International Accounting Standards Board.  
IAS 7 is issued by the International Accounting Standards Board.  
:<span style="color:#4B0082">'''''Direct method of presentation is encouraged'''''</span>
:"An entity shall report cash flows from operating activities using either:
:(a) the direct method, whereby major classes of gross cash receipts and gross cash payments are disclosed; or
:(b) the indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows.
:Entities are encouraged to report cash flows from operating activities using the direct method.
:The direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method."
:''IAS 7 - paragraphs 18 and 19.''




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* [[Cash flow]]
* [[Cash flow]]
* [[Cash flow statement]]
* [[Cash flow statement]]
* [[Direct method]]
* [[Financial reporting]]
* [[Financial reporting]]
* [[FRS 102]]
* [[FRS 102]]
* [[Indirect method]]
* [[International Accounting Standards Board]]
* [[International Accounting Standards Board]]
* [[International Financial Reporting Standards]]
* [[International Financial Reporting Standards]]

Revision as of 07:40, 1 February 2024

Financial reporting - International Financial Reporting Standards (IFRS).

International Accounting Standard 7, dealing with statement of cash flows.

IAS 7 prescribes how to present information in a statement of cash flows about how a reporting entity’s cash and cash equivalents changed during the financial reporting period under review.


IAS 7 is issued by the International Accounting Standards Board.


Direct method of presentation is encouraged
"An entity shall report cash flows from operating activities using either:
(a) the direct method, whereby major classes of gross cash receipts and gross cash payments are disclosed; or
(b) the indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows.


Entities are encouraged to report cash flows from operating activities using the direct method.
The direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method."
IAS 7 - paragraphs 18 and 19.


See also


Other resources