The first article in our series Insights into IAS 7 'Statement of Cash Flows’ has been released.
IAS 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 IAS 7.
Our ‘Insights into IAS 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. The first introductory article provides an overview of the objective, scope and requirements of IAS 7.
