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IAS 7 pt. 1 - Coggle Diagram
IAS 7 pt. 1
OPERATING ACTIVITIES
cash receipts from customers
- O/B and C/B of TRs, TRs from Subs bought or sold, Revenue
cash paid to customers & EEs
- calc "cash generated from operations" using indirect method, then cash paid... will be balancing figure
- NB! include Share in profit of Ass but w/out Dividend received from them
interest paid
- take Finance Cost from P/L
dividend paid
- O/B & C/B of Shareholders for Dividends + Dividends Declared from SCE
tax paid
- first calc movement in Def Tax - then subtract +ve movement or add -ve movement
- O/B & C/B Tax due, plus Inc Tax from P/L
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APPROACH
- Start with Cash & Cash Equivalents balance first to secure marks
- Populate the CFS starting w/ Operating Activities
- Tick off amts as you work through
- Transfer immediately after calc is done
- read whole Q, noting the statements & notes given
- use IE to write down format
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INVESTING ACTIVITIES
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replacement of PPE
- O/B & C/B of CAs, Depreciation, Expansion purchases, Disposed CA
investment in ass
- O/B & C/B, Share in Profit of Ass excl Dividends
ASSOCIATES & JVs
Advances/Loans made to or from will be Investing
- show separately in CFS amt advanced & the repmt
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Acquisition
- initial & subsequent investment is Investing
Disposal
- total Proceeds is Investing
- Gain or Loss from sale is Operating
- Partial sale - Proceeds is Investing, Gain or Loss is Operating, FV or retained interest is Operating
CASH & CASH EQUIVALENTS
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Cash Equivalents: ST, liquid, convertible to known amounts, insignificant risk of changes in value
Bank overdraft: Is it payable on demand? Is it integral to Co's cash mngmnt?
- if yes to both, it is cash equivalents. Else, Financing Activity
FINANCING ACTIVITIES
long term loans
- O/B & C/B, forex gain or loss, add
short term portion
short term loans
- O/B & C/B, less short term
portion of LT loans