Chapter 9 - Statement of Cash Flows Flashcards
(4 cards)
1
Q
Which standards set out the requirements for cash flow statements under IFRS?
A
IAS 1 - Presentation of Financial Statements
IAS 7 - Statement of Cash Flows
2
Q
What is covered by cash under IAS 7?
A
Cash in hand and demand deposits
3
Q
What is covered by cash equivalents under IAS 7?
A
Short-term, highly liquid investments that are readily convertible into known amounts of cash.
Subject to an insignificant risk of range in value
4
Q
What are examples of cash equivalents?
A
- Short term deposits
- Loan notes
- Bank deposit accounts
- Government securities
- Bank overdraft
