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.
This first introductory article provides an overview of the objective, scope and requirements of IAS 7 ‘Statement of Cash Flows’.
