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Accounting Made Easy


International Accounting Standard 7 Cash Flow Statement

Cash flow format-Module C Company name Statement of Cash flow For the Year ended -----------Rs.000 Cash flow from operating activities: Profit before tax (PBT) Add: Depreciation/Amortization Loss on disposal of Asset Impairment Expense Interest expense/Finance cost Gratuity Expense Expense for long term provision (W-1) W-2 , W-4 (W-5) (W-6) (W-7) xxx xxx xxx xxx xxx xxx xxx (xxx) (xxx) (xxx) xxx (xxx) / xxx (xxx) / xxx (xxx) / xxx (xxx) / xxx (xxx) / xxx (xxx) / xxx (xxx) / xxx xxx (xxx) / xxx (xxx) (xxx) (xxx) (xxx) xxx xxx xxx Rs.000

Less: Interest Income / Investment income (W-8) Dividend income (same as interest income) Profit on sale of asset (W-2 and 4) Operating Profit before working capital changes: All C.A & C.L Except: (Increase) / Decrease in debtors - Cash&Cash equivalents (Increase) / Decrease in stocks - Tax asset / liability (Increase) / Decrease in advances - Interest asset / liability (Increase) / Decrease in prepayments - Dividend asset/ liability - Current portion of NCL (Increase) / Decrease in creditors or NCA (Increase)/ Decrease in accruals (Increase) / Decrease in short term provisions Cash generated from operations (Tax Paid) / Tax refund (W-9) Gratuity Paid (W-6) Payment against long term provision (W-7) Dividend Paid (W-10) Interest / Finance cost paid (W-5) Dividend received (same as interest income) Interest received (W-8) Cash inflow / (Outflow) from operating activities (A) Cash flow from investing activities : Purchase of PPE (W-2) Sale of PPE (W-2) Purchase of intangible asset (W-4) Sale of intangible asset (W-4) Expenditure on Capital WIP (W-3) Purchase of investment (W-11) Sale of investment (W-11) Cash inflow / (Outflow) from investing activities (B)

(xxx) xxx (xxx) xxx (xxx) (xxx) xxx xxx

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Cash flow format-Module C Cash flow from Financing activities : Issue of shares (including share premium) (W-12) Proceeds from loan (short term / long term) (W-13) Repayment / redemption of loan (short term / long term) Repayment of lease liabilities (W-14) Cash inflow / (Outflow) from Financing activities (C) Net cash inflow / (Outflow) during the year (A+B+C) Cash and Cash equivalents at start of year Cash and Cash equivalents at end of year xxx xxx (xxx) (xxx) xxx xxx xxx xxx

Cash and Cash Equivalents:

Opening Cash in hand Bank balance Bank overdraft xxx xxx (xxx) Closing xxx xxx (xxx) xxx xxx

Short term investments (with maximum of 3 months maturity) xxx xxx

Note: IAS 7 allows to show: Dividend received Interest received Dividend Paid Interest Paid

Under Under Operating Activities OR Investing Activities Operating Activities OR Investing Activities Operating Activities OR Investing Activities Operating Activities OR Investing Activities

For convenience in exam, it is advisable to show above in operating activities

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(W-1) Profit before Tax (PBT) Dividend for the year Bonus Issue General Reserve Retained Earning b/d [Given in the question] Profit after Tax (bal figure) Revaluation Surplus -

c/d [Given in question]

Profit before tax (PBT) = Profit after tax (PAT) + Tax expense (W-2) Depreciation/ Loss on disposal/ Impairment Expense / Sale,Purchase of Asset Property plant equipment (PPE) Cost b/d [Given in the question] Additions: Cash Other than Cash Revalutaion Transfer from capital WIP Disposal Revaluation -

c/d [Given in the question]

Disposal Revaluation

Accumulated Depreciation B/d [Given] Depreciation Expense for The year

c/d [Given] Disposal Accumulated Depreciation Sale proceed - OR Loss Accumulated Impairment b/d [Given] Impairment loss for the year c/d [Given]

Cost Disposal Cost Profit

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(w-3) Capital WIP b/d [Given] Expenditure on capital WIP Capital WIP Transfer to PPE c/d [Given] -

(W-4) b/d [Given] Addition: Cash Other than Cash Revaluation Intangible Asset NBV Disposal Revaluation Amortization Impairment Loss c/d [Given] Disposal Sale proceed OR Loss -

NBV Disposal Cost Profit (W-5)

Interest Paid c/d [Given] (W-6)

Interest Payable b/d[Given] Interest Expense

Gratuity Paid c/d [Given] (W-7)

Gratuity Provision b/d [Given] Gratuity Expense


Long Term Provision b/d [Given] Expense for the year Purchase of PPE (estimated dismantling cost)

c/d [Given]

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(W-8) Interest Receivable Interest received c/d [Given]

b/d [Given] Interest Income

(W-9) Tax b/d [Deferred] N.C.A b/d [Tax receivable] C.A Tax Relief Tax Paid c/d [Deferred] N.C.L c/d [Tax Payable] C.L (W-10) Dividend Payable b/d [Given] Dividend for the year (w-1) b/d [Deferred] N.C.L b/d [Tax Payable] C.L Tax Expense OR Tax refund c/d [Deferred] N.C.A c/d [Tax receivable] C.A -

Dividend Paid c/d [Given] (W-11) b/d [Given] Addition

Investment Disposal (cost) c/d [Given] Disposal Sale proceed OR Loss

Cost Profit

(W-12) Share Capital b/d [Given] Bonus Issue Issue-other than Cash Issue against Cash -

c/d [Given]

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Bonus Issue c/d [Given] (W-13) Share Issue Cash repayment c/d [N.C.L] c/d [Current portion of C.L] (W-14)

Share Premium b/d [Given] Issue other than Cash Issue against Cash

Loan b/d [N.C.L] b/d [Current portion of C.L] Proceed from Loan

Payment c/d [N.C.L] c/d [Current Portion] N.C.L= N.C.A= C.L = C.A= Non Current Liabilities Non Current Asset Current Liabilities Current Asset

Lease Liability b/d [N.C.L] b/d [Current Portion] Lease during the year -

If there is information about dividend then Retained earning A/c must be prepared to see whether there exist a interim dividend or not.

Bonus issue is made out of reserve ,if it is not mentioned in Question then it is assumed that it is issued out of Retained earning.

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