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

Chapter 19 

KAPLAN PUBLISHING

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Format of a statement of cash flows 

IAS 7 Statement of Cash Flows requires business entities to prepare a 

statement of cash flows as part of their annual financial statements. The cash 

flows must be presented using standard headings. 

Note:

 There are two 

methods of reconciling cash from operating activities, which will be discussed 

later in this chapter. 

You should ensure that you understand the items that are included within each 

of the three sections of the statement of cash flows, together with the 

reconciliation of the net increase or decrease in cash and equivalents for the 

year.