Find Job or Recruit Staff: 093 682 682 | 078 868 848 | info@pp-hr.com | Recruitment Service

IAS 7 STATEMENT OF CASH FLOWS

IAS 7 STATEMENT OF CASH FLOWS

LEARNING OBJECTIVE
I. OPERATING ACTIVITY UDNER DIRECT METHOD
II. INDIRECT METHOD
III. INVESTING ACTIVITY
IV. FINANCING ACTIVITY

…………………………………………………
I. OPERATING ACTIVITY UDNER DIRECT METHOD
Operating activities are the principal revenue-producing activities of the business, and this is further adjusted to deduct interest paid and tax paid.
Investing activities are cash spent on on-current assets, proceeds of sale of non-current assets and income from investments.
Financing activities include the proceeds of issue of shares and long-term borrowings made or paid.
Cash is defined as cash in hand and bank current account balances, including overdrafts.
Cash equivalents are defined as current asset investments (short-term, highly liquid investments, e.g. a 30 day bond).
The gross cash flows necessary for the direct method can be derived:
(1) from the accounting records of the entity by totaling the cash receipts and payments directly, or
(2) from the opening and closing statements of financial position and statement of profit or loss for the year by constructing summary control accounts for:
– sales ( to derive cash received from customers)
– purchases ( to derive cash payments to suppliers)
– Wages ( to derive cash paid to and on behalf of employees).
Note: there are two methods for operating activities: direct and indirect method.

………………………………………………………………

Download lessons:

CHAPTER 7 IAS 7 STATEMENT OF CASH FLOW-part2

CHAPTER 7 STATEMENT OF CASH FLOWS-part 1

Find Jobs Here !

Phnom Penh HR Service

1. Recruitment Service
2. Cambodia Tax Consulting
3. Accounting Service & System
4. Outsourcing Service
5. Internal Auditing Service
6. HR Consulting
7. Practical Job Training
Services by ACCA | CPA,Tax Agent
Diploma in Cambodia Tax,and MBA
**Contact Us Via 093 682 682
078 868 848| info@pp-hr.com
SHARE