| What sorts of items are recorded in the statement of cashflows? | Cash items |
| What types of items are NOT recorded in the statement of cashflows? | Non-cash items, even if they relate to the capital of the company. e.g. bonus issue of shares, revaluation of non-current assets. |
| What IAS is relevant to cashflows? | IAS 7 |
| What should the statement of cashflows contents be split into? | Operating activities
Investing activities
Financing activities |
| What is the indirect method of calculating cashflows from operating activities? | Start with the profit figure, then add back all the non-cash items. |
| What types of items are added back on the indirect method of cashflows? | Depreciation & amortisation
Loss on sale of NCA
Decreases in Receivables & Inventory
Increases in Payables |
| What types of items are deducted in the indirect method of cashflows? | Profit on sale of NCA
Increases in Receivables & Inventory
Decreases in Payables |
| How are payments for the acquisition of non-current assets calculated in the statement of cash flows? | Carrying Amount - Depreciation - Disposals = X (Purchases) - Carrying amount at end of year |
| What items will appear under the Investing section of the cashflow statement? | - Cash spent acquiring non-current assets
- Cash received from the sale of non-current assets
- Income from investments |
| Cash = | Cash in hand + Deposits repayable upon demand - Overdrafts |
| What are Cash Equivalents? | Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. - IAS 7, para 6 |
| What are Cash Flows? | Inflows and outflows of cash and cash equivalents |
| How are Cash Equivalents treated? | They are Current Asset Investments |
| How are payments for the acquisition of non-current assets in the SOC calculated? | Opening/B less Depreciations less Disposals less Closing/B |
