IAS 7

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International Accounting Standard 7: Statement of Cash Flows or IAS 7 is an accounting standard that establishes standards for cash flow reporting used in International Financial Reporting Standards.

A statement of cash flows for the periods, is an integral "Component of financial statements" as per IAS 1 — Presentation of Financial Statements.

Objective[edit]

International Accounting Standard 7 prescribes the principles of preparing and presenting a cash flow statement. Specifically, IAS 7 requires a cash flow statement to be prepared in which cash and cash equivalents are classified according to their source as stemming from operating, investing or financing activities.[1] The objective of IAS 7 — Statement of Cash Flows as per IFRS is:

"To require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows, which classifies cash flows during the period according to operating, investing, and financing activities."

History of IAS 7[edit]

IAS 7 was reissued in December 1992, retitled in September 2007, and is operative for financial statements covering periods beginning on or after 1 January 1994.

June 1976 Exposure Draft E7 Statement of Source and Application of Funds
October 1977 IAS 7 Statement of Changes in Financial Position
July 1991 Exposure Draft E36 Cash Flow Statements
December 1992 IAS 7 (1992) Cash Flow Statements
1 January 1994 Effective date of IAS 7 (1992)
6 September 2007 Retitled from Cash Flow Statements to Statement of Cash Flows as a consequential amendment resulting from revisions to IAS 1
16 April 2009 IAS 7 amended by Annual Improvements to IFRSs 2009 with respect to expenditures that do not result in a recognised asset.
1 July 2009 Effective date for amendments from IAS 27(2008) relating to changes in ownership of a subsidiary
1 January 2010 Effective date of the April 2009 revisions to IAS 7

References[edit]

  1. ^ "IAS 7". Retrieved 19 June 2013. 

External links[edit]

  • IASB (International Accounting Standards Board)