IAS 1 Presentation of financial statements paragraph 32 prohibits the offset of assets and liabilities, and income and expense, unless this is specifically required or permitted by an other IFRS.
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 … Continue reading
Although the definitions of operating activities, financing activities and investing activities may appear straightforward, in practice a number of classification errors are frequently made. These include:
1. Cash outflows related to the acquisition of intangible assets and items of property, plant and equipment incorrectly included within operating activities.
Some items of property, plant and equipment are purchased from suppliers on standard credit terms that are similar to those for inventory and for amounts payable to other creditors.… Continue reading
IAS 7.10 requires an entity to analyse its cash inflows and outflows into three categories:
It is often assumed that this category includes only those cash flows that arise from an entity’s principal revenue producing activities.… Continue reading
This a pretty complete picture of what information has to be inluded in a statement of cash flows and how to present it. The statement of cash flows provides information about the changes in cash and cash equivalents of an entity for a reporting period, showing separately changes from operating activities, investing activities and financing activities.
… Continue reading