How does IAS 7 require cash flows during a period to be reported?
A)The cash flows generated by operating activities,investing activities and financing activities are listed,together with the net change in cash and cash equivalents.
B)Only the net change in cash and cash equivalents is required
C)The cash flows generated by operating activities,investing activities and financing activities are listed in their constituent parts,together with the net change of cash and cash equivalents
D)Total cash flows must be generated on a monthly basis to show trends over the financial year

Question

Quizplus · Accepted Answer

IAS 7 requires the cash flows generated by operating activities, investing activities, and financing activities to be listed separately, along with the net change in cash and cash equivalents. This provides a more detailed breakdown of how the cash flows have been generated or used during the period. Option A reflects this requirement accurately. Option B is incorrect because it only reports the net change, without breaking it down into the different types of activities. Option D is incorrect because there is no requirement to report cash flows on a monthly basis; the report should cover the period for which the financial statements are presented.

How Does IAS 7 Require Cash Flows During a Period