It replaced IAS 7 Statement of Changes in Financial Position (issued in October 1977). STATEMENT OF CASH FLOW 2. IAS 7 Presentation of a statement of cash flows 10 The statement of cash flows shall report cash flows during the period classified by operating, investing and financing activities. IAS 7 Cash Flow Statements was issued by the International Accounting Standards Committee in December 1992. Presenters Md. This session on IAS® 7 statements of cash flows, deals with the fourth primary financial statement an entity is required to present under IFRS. In April 2001 the International Accounting Standards Board resolved that all Standards Masudur Rahaman Md. Rashedul Islam Md. One of the statements is the cash flow statement. State the differences between a profit or loss account and a cash flow statement b. IAS 7 - Statement of Cash Flow 1. 11 An entity presents its cash flows from operating, investing and financing activities … Ahmed Farhad 3. Overview of IAS 7 Issued: in 1977; re-issued in 1992, followed by amendments; Effective date: 1 January 1994; What it does: It requires the presentation of changes in cash and cash equivalents in the form of statement of cash flows; Find articles, books and online resources providing quick links to the standard, summaries, guidance and news of recent developments. (IAS 7.1) (IAS 7.21-24) Benefits of cash flow information (IAS 7.3-4) Requirements • All entities must prepare a Statement of Cash Flows • The Statement of Cash Flows comprises part of an entity’s “complete set” of financial statements under IFRS1 • The Statement of Cash Flows must be presented with equal prominence Detailed requirements for cash flow statement presentation and disclosure are dealt with in IAS 7 - Statement of cash flows standard. STATEMENT OF CASH FLOW The statement of cash flows shows the ability of any company to generate cash. Cash flows during the period are classified according to operating, investing, and financing activities. IAS 7 – Statement of Cash Flow states that cash flows provide information about the cash receipts and cash payments of an enterprise over a given period. IAS 7 statement of cash flows require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows. 2This Standard supersedes IAS 7 Statement of Changes in Financial Position, approved in July 1977. Unlike many national accounting rules IAS 7 requires all entities to present a cash flow statement as an integral part of the financial statements. The accounting standard IAS 7 requires reporting entities to present information about historical changes in cash and cash equivalents through cash flow statements. The success, growth and survival of an entity depend not only on profit, but also on the entity's ability to generate or otherwise obtain cash. 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