IAS 7 Statement of Cash Flows

International Accounting Standard 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;
- It defines cash and cash equivalents and explains what is and what is NOT included in cash flow movements.
- It classifies the cash flows as either from operating, investing or financing activities.
- It requires reporting cash flows from operating activities either by direct or indirect method.
- In relation to reporting cash flows from investing and financing activities, IAS 7 asks to report gross receipts and payments with several exceptions where net basis is allowed.
- It also deals with several specific transactions, such as foreign currency cash flows, interest and dividends, taxes on income, investments in subsidiaries, associates and joint ventures, changes in ownership interests in subsidiaries and other businesses, non-cash transactions etc.

Summary of IAS 7 Statement of Cash Flows
Consolidated statement of cash flows with foreign currencies -here, you can find the full step by step explanation of making consolidated statement of cash flows when a parent and subsidiary have different functional currencies.
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How to present leases under IFRS 16 in the statement of cash flows (IAS 7) - with the video showing the exact steps of how to do that in Excel file

How to present restricted cash under IAS 7 - if you are limited in using your cash, how should you present it?

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