![]() statement of cash flows for the previous reporting period-well, you can proceed further without this, but it’s good source of potential recurring adjustments in the current period.statement of changes in equity for the current reporting period.statement of comprehensive income (profit or loss statement + statement of other comprehensive income if applicable) for the current reporting period.balance sheet (statement of financial position) as at the end of the current reporting period (closing B/S) and as at the beginning of the current reporting period (opening B/S).In order to start, you shall obtain at least the following documents: Step 1: Prepare-Gather Basic Documents and Data We are going to learn how to prepare statement of cash flows by indirect method. ![]() You will stay cool, no nerves, no stress, just patience and concentration on this lovely work.Sometimes you will need to do some adjustments resulting from supporting data and it would be lovely if you could get all pieces of info in the blink of an eye. Availability of various accounting information is generally good and you can easily access them.If that’s not the case, I sincerely recommend watching our online videos on these topics-in particular IAS 1: Presentation of Financial Statements and IAS 7: Statement of Cash Flows. You understand the basics of cash flows, relationship between individual components of financial statements (balance sheet, income statement and others), accounting etc. You already know what the statement of cash flow is and what parts it has (operating, investing, financing and final reconciliation).This method works only if you understand the following matters: This video comes from my IFRS Kit, but if you’d like to watch it for free, please subscribe to my newsletter (by entering your e-mail address to the form on the right sidebar) and you’ll get it within my free IFRS mini-course. Therefore, I published a video with step-by-step illustration of making cash flow statements. UPDATE 2018: This article has already got a lot of attention and I’m grateful for this. I personally hated to prepare cash flows until I learned this simple method that I am going to show you. Maybe it looks very complicated, but don’t worry, people make much more serious IFRS mistakes than cash flow statements! If you subscribe to my e-mail updates you’ll get my free report “Top 7 IFRS mistakes” and you’ll learn how to avoid these mistakes, too.īut let’s be clear in one point: You still need a good method and resources to prepare statement of cash flows in line with IAS 7. If you take action today and subscribe to the IFRS Kit, you’ll get it at discount! Click here to check it out! Have you already checked out the IFRS Kit ? It’s a full IFRS learning package with more than 40 hours of private video tutorials, more than 140 IFRS case studies solved in Excel, more than 180 pages of handouts and many bonuses included.
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