IAS 7 Statement of Cash Flows — Accounting glossary

IAS 7 governs statements of cash flows, classifying cash movements as operating, investing or financing activities and reconciling cash and cash equivalents. IFRS 18 amended aspects of cash-flow presentation. A 2,000 cash purchase of equipment is reported as an investing outflow; depreciation of that equipment is not itself a cash payment.

Worked example

Cash paid to buy equipment is normally an investing cash outflow.

Common mistake

Including a non-cash asset acquisition as a cash payment in the statement.

Where it appears in your exams

Qualification	Exam	Relationship	Period
ACCA	FA	Direct	September 2026–June 2027
ACCA	FR	Direct	Official assessment-window verification pending
ACCA	K1	Supporting	July 2027–August 2028
CIMA	F1	Direct	Official assessment-window verification pending
FIA	FFA	Direct	September 2026–June 2027

Related terms

IFRS Accounting Standards
IFRS Foundation
International Accounting Standards Board (IASB)

Also called: IAS 7