Main purpose and element of the Statement of Cash Flow
1 DIRECT METHOD
1.1 Cash Received
1.2 Cash Paid to suppliers
1.3 Cash paid to employees
1.4 Cash paid for
1.5 Interest Paid
1.6 Taxes Paid
1.7 Dividends Paid
1.8 Net cash
2 INDIRECT METHODS
2.1 The net cash flow from operating activities is determined by
adjusting profit or loss for the effects of:
2.1.1 Changes during the period in inventories and operating receivables and payables
188.8.131.52 Non-Cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and
undistributed profits of associates
184.108.40.206.1 All other items for which the cash effects are investing or financing cash flows.
3 To provide information about a company's
gross receipts and gross payments for a
specified period of time.
3.1 The gross receipts and gross payments will be reported in the
cash flow statement according to one of the following
classifications: operating activities, investing activities, and
3.1.1 Operating: The sources and uses of cash in the operating section
come from revenue, expenses, gains, losses, and other costs.
3.1.2 Investing: This section shows sources and uses of cash from debt and equity purchases and
sales; purchases of property, plant, and equipment; and collection of principal on debt.
3.1.3 Financing: You report activities such as long-term liability (paying or securing loans
beyond a period of 12 months from the balance sheet date) and equity items (sale of
company stock and payment of dividends) in the financing section.