International Financial Reporting Standards (IFRS)

IFRS for Small and Medium-sized Entities (SMEs)
Section 7: Statement of Cash Flows

1. Cash flows are classified by
(1) operating activities
(2) investing activities
(3) financing activities

2. Cash flows from operating activities
--> Both Indirect Method and Direct Method are allowed.

3. Examples of operating activities
(1) sale of goods
(2) services provided
(3) royalty income
(4) payment to suppliers
(5) payment to employees

4. Examples of investing activities
(1) acquisition of long-term assets
(2) sale of long-term assets
(3) acquisition of investments
(4) sale of investments
(5) loans to others
(6) collection of loans

5. Examples of financing activities
(1) issuance of own equity instruments
(2) issuance of debt instruments
(3) repayment of borrowings
(4) payments for finance leases