STATEMENT OF CASH FLOW
 receipt from repayment of advances and loans
 Component of fs summarizing OIF activities of
an entity
 Provides info about cash receipts and cash
payments
PRIMARY PURPOSE: provide relevant info about cash
receipts and cash payments of an entity during a period
Cash; cash on hand and demand deposits
Cash Equivalents; short-term highly liquid investments
that are readily convertible to cash
PAS 7, paragraph 7, for an investment to qualify as
cash equivalent must be acquired 3 mos or less before
the maturity date
Classification of cash flows
Operating activities, derived primarily from the
principal revenue producing activities of the entity
 sale of goods and rendering services
 royalties, rental, fees, commissions and other
revenue
 payment to supplier for goods and services
 payment for selling, administrative and other
expenses
 receipts and payment of insurance for
premiums and claims, annuities and other
policy benefits
 payments or refunds of income taxes
 receipts and payments for securities held for
trading
 purchase and sale of dealing or trading
securities
Investing activities, derived from acquisition and
disposal of long-term assets and other investments not
included in cash equivalent (non operating assets)
 payment to acquire PPE, intangibles & long-
term asset
 receipt from sale of PPE, intangibles & long-
term asset
 payment to acquire equity or debt instruments
of other entities (current & long-term inv)
 receipt from sales of equity or debt instruments
of other entities
 cash advances & loan to other parties
made to other parties
 payment for future, forward, option and swap
contract
 receipt from future, forward, option and swap
contract
Financing activities, derived from equity capital and
borrowings of entity (non trade liability & equity)
Results from transactions:
a) entity and owners – equity financing
b) entity sand creditors – debt financing
 receipt from issuance of ordinary and
preference shares
 payment to acquire treasury sales
 receipt from issuing debentures, loans, notes,
bonds, mortgages & short or long-term
borrowings
 payment for amounts borrowed
 payment by a lessee for reduction of
outstanding principal lessee liability
Noncash transactions, excluded from SCF, disclosed
elsewhere in the fs
 acquisition of asset by assuming directly related
liability
 acquisition of asset by issuing share capital
 acquisition of asset by issuing bonds payable
 conversion of bonds payable to share capital
 conversion of preference share to ordinary
share
Interest, interest paid and received should be in
operating activities but interest paid may be classified
as financing because it’s a cost of obtaining financial
resources and interest received as investing because it’s
a return on investment
Dividends received shall be operating activity but
dividend received can be investing because return on
investment