IAS 7.13 – 17 sets out requirements for, and examples of, individual cash inflows and outflows that are to be presented separately in respect of operating, investing and financing activities. The offset of cash inflows and outflows is not permitted (except in limited circumstances, that are relevant for financial institutions – see below), meaning that separate (gross) disclosure is required for cash flows, including those related to:
- The purchase and sale of intangible assets, and items of property, plant and equipment
- The draw down and repayment of borrowings
- The lending of funds to third parties, and the repayments associated with those loans.
– Offsetting cash flows for financial institutions
IAS 7.24 permits the following cash flows of a financial institution to be presented on a net basis:
- Cash receipts and payments for deposits with a fixed maturity dates
- Deposits placed and withdrawn from other financial institutions
- Cash receipts and payments for cash advances and loans.