Operating activities

Operating cash flows arise from principal revenue-producing activities and other activities that are not investing or financing. A cash-flow statement may use the indirect method: start from operating profit under the FA IFRS 18 approach, adjust for non-cash items and working-capital movements, then show relevant taxes paid. The result describes cash, not the accrual-basis operating profit itself. The indirect adjustments reconcile accrual accounting to cash movements during the reporting period.