IAS 7: Difference between revisions
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''Financial reporting - International Financial Reporting Standards.'' | ''Financial reporting - International Financial Reporting Standards (IFRS).'' | ||
International Accounting Standard 7, dealing with statement of cash flows. | International Accounting Standard 7, dealing with statement of cash flows. | ||
| Line 7: | Line 7: | ||
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.'' | |||
== See also == | == See also == | ||
* [[ASC 230]] | |||
* [[Cash]] | * [[Cash]] | ||
* [[Cash equivalents]] | * [[Cash equivalents]] | ||
* [[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]] | ||
| Line 22: | Line 41: | ||
== | == Other resources == | ||
[https://www.iasplus.com/en/standards/ias/ias7 IAS 7 - IAS Plus] | *[https://www.iasplus.com/en/standards/ias/ias7 IAS 7 - IAS Plus] | ||
*[https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2022/issued/part-a/ias-7-statement-of-cash-flows.pdf?bypass=on IAS 7 text - IFRS] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
Latest revision as of 07:56, 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
- ASC 230
- Cash
- Cash equivalents
- Cash flow
- Cash flow statement
- Direct method
- Financial reporting
- FRS 102
- Indirect method
- International Accounting Standards Board
- International Financial Reporting Standards
- Reporting entity
- Statement of cash flows
