IAS 7 - Statement of Cash Flows

Question 0

What are the 2 methods for presenting cash flows from operating activities?

Answer 0

1) The indirect method

2) The direct method

Question 1

What are the 3 headings that cash flows are categorised under?

Answer 1

1) Operating activities
2) Investing activities
3) Financing activities

Question 2

What is the comparison of IAS 7 Cashflows against UK GAAP

Answer 2

UNDER UK GAAP : -
Certain entities are exempt from cash flow reporting

UNDER IAS 7 : -
Cash flow reporting applies to all entities

UNDER UK GAAP : -
9 headings in the statement

UNDER IAS 7 : -
3 headings in the statement

UNDER UK GAAP : -
Shows a change in cash which includes deposits repayable on demand

UNDER IAS 7 : - Shows change in cash and cash equivalents, a wider catergory.