STATEMENT OF CASH FLOW IAS7

EXAMPLE SUPPOSE
2015 2016
CASH IN HAND 55000 74000
CASH @ BANK 46000 38000
BANK OVERDRAFT NIL 25000 -188000
SHORT TERM DEPOSITS NIL NIL
(not more then 3 months)
CASH AND CASH EQUIVALENTS 101000 87000 2016
ENDING
NET DECREASE IN CASH & CASH EQUIVALENTS -14000 87000 LESS
NET DECREASE IN CASH & CASH EQUIVALENTS -188000 -87000 LESS
NET INCREASE IN CASH AND CASH EQUIVALENTS 14000 -87000 LESS
NET INCREASE IN CASH AND CASH EQUIVALENTS 188000 87000 LESS

IMPORTANT POINTS TO NOT

AMOUNTS NOT TO BE TAKEN IN CASH FLOW
CASH FLOW METHODS
1) BONUS SHARE ISSUE
2) REVALUATION RESERVE DIRECT
3) REVENUE RESERVE ANSWERS SAME
4) EXCESS DEPRECIATION REVERSE FORMAT DIFFERENT
5) PROPOSED DIVIDEND RECOMMENDED YES
6) SETTLEMENT OF LOAN OR PURCHASE OF NCA BY SHARE IN PRACTICE
IN COMPANIES LEAST
CASH APPROCH

INDIRECT METHOD

OPERATING ACTIVITY SOCI

SOCI CA CL REVENUE
LESS COST OF SALE
INVESTING ACTVITY GROSS PROFIT
NCA LESS OPERATING EXPENCE
ADD OTHER INCOME
FINANCING ACTIVITY PROFIT BEFORE INTEREST AND TAX/PBIT
SHE NCL LESS FINANCE COST / INTEREST EXPENSE
PROFIT BEFORE TAX
LESS TAX EXPENSE
PROFIT AFTER TAX
 2015
ENDING
101000
101000
-101000
-101000 101000 -87000

CASH FLOW METHODS

INDIRECT
SAME
DIFFERENT
NO

MOSTLY
NON CASH APPROCH

SOFP
ASSET
NON CURRENT ASSET

CURRENT ASSET

REST AND TAX/PBIT TOTAL ASSET

/ INTEREST EXPENSE
EQUITY
SHARE HOLDER EQUITY

NON CURRENT LIABILITY

CURRENT LIABILITY