IAS 7
Encyclopedia
IAS 7 establishes standards for cash flow reporting used in IFRS
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More specifically, IAS 7 requires a statement of cash flows to be prepared in which cash and cash equivalents are classified according to their source as stemming from operating, investing or financial activities.
Operating activities are revenue-producing activities that are neither investing nor financial.
Investing activities are buying and selling of long-term assets and investments that are not cash equivalents.
Financial activities affect the equity capital of the company.
International Financial Reporting Standards
International Financial Reporting Standards are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board ....
.
More specifically, IAS 7 requires a statement of cash flows to be prepared in which cash and cash equivalents are classified according to their source as stemming from operating, investing or financial activities.
Operating activities are revenue-producing activities that are neither investing nor financial.
Investing activities are buying and selling of long-term assets and investments that are not cash equivalents.
Financial activities affect the equity capital of the company.