Can anybody help me to prepare Cash Flow Statement? I mean, which transactions will be considered for cash flow statement, which will be ignored, etc.
Message from Ally
Statement of Cash flow deals with all cash transactions and ignores
all non cash transactions so as to arise at the changes in cash and
Message from Jeroen
IAS 7 has an illustrative example on how to produce cash flow statements. This might be useful.
If using the indirect approach, the approach is basically as follows:
1) operating profit
2) adjust for non cash movements (depreciations, movements in inventory, accounts receivable&payable)
3) include non P&L cash movements from investment and financing activities (e.g. share issue, loans etc)
Message from Aliya
Attached is the sheet that may give you the idea roughly the way the
cash flow is made.
Link – http://www.ifrslist.com/download/13/
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