Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar

level: Statement of Cashflows

Questions and Answers List

level questions: Statement of Cashflows

QuestionAnswer
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