DFS Statement of Cashflow (confused)

Newbie Registered Posts: 229 Dedicated contributor 🦉
Hi im new to the forum, I note the statement of cashflow in the studytext does not match the pro forma, ie cash from operating activities is now net cash from operating activities, my question is where do you put the adjustments i.e depn, loss on disposal etc, hope you can help, I am aware of the DFS changes but this has stumped me (my tutor on hols) thanks


  • Londina
    Londina Registered Posts: 814 Epic contributor 🐘
    This is Net Cash from operating activities:

    Profit from operations
    Adjustments for:
    Gain on disposal of property, plant and equipment

    Operating cash flows before movements in working capital

    Decrease/(Increase) in inventories
    Decrease/(Increase) in trade receivables
    (Decrease)/Increase in trade payables

    Cash generated by operations

    Tax paid
    Interest paid
    Net cash from operating activities

    then you have the Cash flow statement :

    Investing activities
    Proceeds on disposal of property, plant and equipment
    Purchases of property, plant and equipment
    Net cash used in investing activities

    Financing activities
    New bank loans raised
    Proceeds of share issue
    Net cash from financing activities

    Net increase/(decrease) in cash and cash equivalents

    Cash and cash equivalents at beginning of year

    Cash and cash equivalents at end of year

    Hope that this helps. Otherwise have a look in some past papers for the layout!
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
    You ususally do journals for the adjustments.
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    My book shows the net cash from operations as the only one in the cash flow statement.

    The whole calculation and reconciling to that figure goes in as a note to the financial statements below the cash flow statement.
  • Clare Finch
    Clare Finch Registered Posts: 40 Regular contributor ⭐
    cash flow


    I suggest to look at the December 09 paper to understand the examining style:
    Basically the cash flow (full format) is being asked as 2 separate tasks: extracts below

    Task 1.6 (10 minutes)

    Prepare a reconciliation of profit from operations to net cash from operating activities for Adlington Ltd for the year ended 31 October 2009.

    Task 1.7 (15 minutes)

    Using the pro-forma in your answer booklet, prepare the statement of cash flows (cash flow statement) for Adlington Ltd for the year ended 31 October 2009.

    So for task 1.6 you had to sart with profit from ops, add back depn, deduct profit on disposal, adjust for inventory/receivables/payables/ deduct interestpaid and tax paid.

    Then task 1.7 starts with your answer to 1.6

    Net cash from operating activities (per your answer to 1.6)

    then you need to bring in the investing activities and financing activities.

    The actual IAS7 format is 3 sections


    They were examined

    Operating - task 1.6
    Investing - task 1.7
    Financing- task 1.7

    Hope that makes sense!


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