CertIFR_C24_IAS 7_SOCF

What is Statement of cash flows (SOCF)?

• The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.

• The acquisition and disposal of long-term assets and other investments not included in cash equivalents.

• A useful addition to financial statements:

  • Concentrates on the sources and uses of cash;

  • A useful indicator of a company’s liquidity and solvency.

• Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

What is Operating activities?

• The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.

• The acquisition and disposal of long-term assets and other investments not included in cash equivalents.

• A useful addition to financial statements:

  • Concentrates on the sources and uses of cash;

  • A useful indicator of a company’s liquidity and solvency.

• Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

What is Cash equivalents?

• The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.

• The acquisition and disposal of long-term assets and other investments not included in cash equivalents.

• A useful addition to financial statements:

  • Concentrates on the sources and uses of cash;

  • A useful indicator of a company’s liquidity and solvency.

• Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

What is Investing activities?

• The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.

• The acquisition and disposal of long-term assets and other investments not included in cash equivalents.

• Activities that result in changes in the size and composition of the contributed equity capital and borrowings of the entity.

• Inflows and outflows of cash and cash equivalents.

What is Financing activities?

• The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.

• The acquisition and disposal of long-term assets and other investments not included in cash equivalents.

• Activities that result in changes in the size and composition of the contributed equity capital and borrowings of the entity.

• Inflows and outflows of cash and cash equivalents.

What is Cash flows?

• Comprises cash on hand and demand deposits

• Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• Activities that result in changes in the size and composition of the contributed equity capital and borrowings of the entity.

• Inflows and outflows of cash and cash equivalents.

What is Cash?

• Comprises cash on hand and demand deposits

• Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• Activities that result in changes in the size and composition of the contributed equity capital and borrowings of the entity.

• Inflows and outflows of cash and cash equivalents.