Acca financial Accounting (FA) Study Text ac ca (FA)

Statement of cash flows 

350

 

KAPLAN PUBLISHING

 

Note re 'Cash generated from operations':

 This is based upon a 

reconciliation beginning with profit before tax from the statement of profit or loss 

which is adjusted for items included in arriving at profit before tax, but which are 

not reflected by an inflow or outflow of cash. The reconciliation of items from 

'Profit before tax' to 'Cash inflow from operating activities' can be shown either 

on the face of the statement of cash flows itself or as a separate working. This 

will be explained and illustrated within the chapter.