11. IAS 7 Statement of Cash Flows
1. Lectures
1-1 Introduction and Presentation [R]
1-2 Reporting and Disclosure [R]
Query: Working capital me changes me increase add or decrease less q horhe?
Response: Payments of cash are outflow. Receipts of cash are inflow.
Increase in assets: Cash outflow (Example: paid for inventory)
Decrease in assets: Cash inflow (Example: Received cash from trade receivables)
Increase in liability: Cash inflow (Example: received advance from customer)
Decrease in liability: Cash outflow (Example: paid the liability)
1-3 Calculation Tips: Investing activities [R]
1-4 Calculation Tips: Financing activities [R]
2. Practice Q&A
2-1 Q&A Sindh Robotics Company [O]
Query: Aoa sir bank over draft ko hum nay Q consider nahe kiya? Woh current liability mai shamil hota na. Kindly clear kr dain
Response: WA, Yes bank overdraft is presented as current liability. However, it is by nature part of "cash and cash equivalent", a negative bank balance. So it is not part of operating activity, rather presented as part of cash and cash equivalent (since it is negative balance, it shall be deducted from positive balance of cash).
2-2 Q&A Nadir Limited (ICAP Spring 2018) [R]
2-3 Q&A XYZ Limited (ICAP Spring 2015) [I]
2-4 Q&A Quality Enterprises (ICAP Spring 2016) [R]
2-5 Q&A Liaquat Industries (ICAP Spring 2017) [R]
2-6 Q&A Drum Limited (ICAP Spring 2019) [I]
2-7 Q&A Sunday Traders Limited (ICAP Autumn 2019) [I]
2-8 Q&A Broad Peak Limited (ICAP Spring 2020) [O]
2-9 Q&A Taxila Limited (ICAP Autumn 2020) [R]
Query: Aoa. Sir jo fully depreciated asset ka disposal hoa usko PPE k account main Cr. Q nahi kia with Rs. 36mil?
Response: WA,PPE data in this question is on net basis. Therefore, PPE account has been made on net book value. The NBV of fully depreciated asset is zero (i.e. Rs. 36 million cost - Rs. 36 million accumulated depreciation).
2-10 Q&A Saguaro Limited (ICAP Autumn 2021) [R]
2-11 Q&A Universal Limited (ICAP Autumn 2017) [I]
2-12 Dahl Limited (ICAP Spring 2022) [R]
Query: Aoa. Sir is mn tax payable ki figure to add back q kia. Jab k hum taxpayable ya intrest payable ko seperately Working Capital Changes main show nahi karty?
Response: WA
You will notice that in SFP there is no tax payable shown separately.
Tax payable is included (as a minus) in "working capital other than cash", we added it back (as reversal) because we do not show it separately.
Query: Sir revaluation ka some part retained earnings me nhi jae?(incremental depreciation)
Response: Not always. If revaluation is carried at current year-end, there would be no incremental depreciation.
Query: sir how we know that k tax capital se minus hai?
Response: Because tax is not mentioned in SFP and SFP is still tied up (tally).
2-13 Quicken Limited (ICAP Autumn 2022) [I]
Query: current year mai dep hoi to incremental dep kaise transfer hoi
Response: When revaluation (resulting) is carried at start or mid of year, there would be incremental depreciation due to depreciation calculated on higher amount. However, in case of revaluation carried at year-end, incremental depreciation will arise in next year. Question information (i) is very clear regarding this issue.
2-14 Dolphin Limited (ICAP Autumn 2023) [R]
3. Objective Based Q&A