These illustrative examples accompany, but are not part of, IAS 7.
Adjustments for unrealised foreign exchange losses (gains) Example | MonetaryDuration, Debit | IAS 7.20 b Common practice | 520000 |
Cash flows from (used in) operations Example | MonetaryDuration | IAS 7.20 Example | 510000, 520000 |
Cash flows from (used in) operations before changes in working capital Example | MonetaryDuration | IAS 7.20 Common practice | 800300 |
Increase through new leases, liabilities arising from financing activities Example | MonetaryDuration, Credit | IAS 7.44B Example | 851100 |
1 | The examples show only current period amounts. Corresponding amounts for the preceding period are required to be presented in accordance with IAS 1 Presentation of Financial Statements. |
2 | Information from the statement of comprehensive income and statement of financial position is provided to show how the statements of cash flows under the direct method and indirect method have been derived. Neither the statement of comprehensive income nor the statement of financial position is presented in conformity with the disclosure and presentation requirements of other Standards. |
3 | The following additional information is also relevant for the preparation of the statements of cash flows:
|
During the period the Group obtained control of subsidiary X. The fair values of assets acquired and liabilities assumed were as follows [Refer:paragraph 40]:
Cash | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 650 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade payables | (100) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | (200) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total purchase price paid in cash | 590 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Cash of subsidiary X acquired | (40) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid to obtain control net of cash acquired | 550 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the period, the Group acquired property, plant and equipment and right‑of‑use assets relating to property, plant and equipment with an aggregate cost of 1,250, of which 900 related to right‑of‑use assets. Cash payments of 350 were made to purchase property, plant and equipment [Refer:paragraphs 43 and 44].
Cash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments. Cash and cash equivalents included in the statement of cash flows comprise the following amounts in the statement of financial position [Refer:paragraphs 45–47]:
20X2 | 20X1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash on hand and balances with banks | 40 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 190 | 135 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents as previously reported | 230 | 160 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes | – | (40) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents as restated | 230 | 120 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at the end of the period include deposits with banks of 100 held by a subsidiary which are not freely remissible to the holding company because of currency exchange restrictions. [Refer:paragraph 48]
The Group has undrawn borrowing facilities of 2,000 of which 700 may be used only for future expansion. [Refer:paragraphs 48 and 50(a)]
Segment A | Segment B | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash flows from: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating activities | 1,520 | (140) | 1,380 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investing activities | (640) | 160 | (480) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing activities | (570) | (220) | (790) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
310 | (200) | 110 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20X1 | Cash flows | Non-cash changes | 20X2 | ||||||
Acquisition | New leases | ||||||||
Long-term borrowings | 1,040 | 250 | 200 | – | 1,490 | ||||
Lease liabilities | – | (90) | – | 900 | 810 | ||||
Long-term debt | 1,040 | 160 | 200 | 900 | 2,300 | ||||
As an alternative, in an indirect method statement of cash flows, operating profit before working capital changes is sometimes presented as follows:
Revenues excluding investment income | 30,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expense excluding depreciation | (26,910) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating profit before working capital changes | 3,740 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | The example shows only current period amounts. Comparative amounts for the preceding period are required to be presented in accordance with IAS 1 Presentation of Financial Statements. |
2 | The example is presented using the direct method.
|
Assets held to hedge liabilities arising from financing activities [member] Example | Member | IAS 7.44C Example | 851100 |
Lease liabilities [member] Example | Member | IAS 7.44C Example | 851100 |
Long-term borrowings [member] Example | Member | IAS 7.44C Example | 851100 |
Short-term borrowings [member] Example | Member | IAS 7.44C Example | 851100 |
1 | This example illustrates one possible way of providing the disclosures required by paragraphs 44A–44E. |
2 | The example shows only current period amounts. Corresponding amounts for the preceding period are required to be presented in accordance with IAS 1 Presentation of Financial Statements. |
20X1 | Cash flows | Non-cash changes | 20X2 | ||||||||
Acquisition | Foreign exchange movement | Fair value changes | |||||||||
Long-term borrowings | 22,000 | (1,000) | – | – | – | 21,000 | |||||
Short-term borrowings | 10,000 | (500) | – | 200 | – | 9,700 | |||||
Lease liabilities | 4,000 | (800) | 300 | – | – | 3,500 | |||||
Assets held to hedge long-term borrowings | (675) | 150 | – | – | (25) | (550) | |||||
Total liabilities from financing activities | 35,325 | (2,150) | 300 | 200 | (25) | 33,650 | |||||