tailieunhanh - Lecture IFRS primer international GAAP basics: Chapter 3 - Wiecek, Young

Chapter 3 - Statement of cash flows IAS 7. The following will be discussed in this chapter: Related standards, IAS 7, current GAAP comparisons, looking ahead, end-of-chapter practice. | Lecture IFRS primer international GAAP basics Chapter 3 - Wiecek Young Statement of Cash Flows IAS 7 Wiecek and Young IFRS Primer Chapter 3 Statement of Cash Flows Related standards IAS 7 Current GAAP comparisons Looking ahead End-of-chapter practice 2 Related Standards FAS 95 Statement of cash flows FAS 102 Statement of cash flows exemption of certain enterprises and classification of cash flows from certain securities acquired for resale FAS 104 Statement of cash flows net reporting of certain cash receipts and cash payments and classification of cash flows from hedging transactions 3 Related Standards IAS 1 Presentation of financial statements 4 IAS 7 - Overview Objective and scope Cash flows Reporting operating cash flows Reporting investing cash flows Reporting financing cash flows Specific items Disclosures 5 IAS 7 Objective and Scope IAS 7 objective to provide a statement to help investors assess the prospects for future cash flows and to confirm or change their past expectations Statement provides historical information on the entity s operating investing and financing cash flows and how its cash balances have changed in the period as a result 6 IAS 7 Cash Flows Cash and cash equivalents Cash on hand and on deposit and short- term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value Can include bank overdrafts if part of cash management activities and balance fluctuates between positive and negative amounts 7 IAS 7 Reporting Operating Cash Flows Operating activities are the principal revenue-producing activities and those that are not investing or financing activities Operating cash flows are important surplus cash flows needed to invest in increased capacity pay debt when due and provide a return to shareholders 8 IAS 7 Reporting Operating Cash Flows Operating cash flows a Cash received from customers for the sale of goods and provision of services or on account