Insights into PAS 7: PAS 7 at a glance
PAS 7 ‘Statement of Cash Flows’ was introduced in 2001 and the accounting principles have remained largely unchanged since. The increasing attention on an entity’s cash generation and liquidity position has led to greater focus on the statement of cash flows by financial statement users, regulators and other commentators. However, this additional focus and scrutiny has also highlighted some common errors and inconsistencies in the application of PAS 7. This first introductory article provides an overview of the objective, scope and requirements of PAS 7.
Our ‘Insights into PAS 7’ series is aimed at simplifying the requirements of the Standard by explaining the fundamentals of reporting cash flows using relatively simple language and providing insights to help entities cut through some of the complexities associated with the requirements. This introductory article provides an overview of the objective, scope and requirements of PAS 7. It also covers the impact of PFRS 18 Presentation and Disclosure in Financial Statements on PAS 7 and discusses the continued maintenance of the Standard through agenda decisions.
The full publication is accessible and downloadable below.
