Recovery from the financial crisis remains uncertain across both mature and emerging markets. During the past 12 months we have seen volatile commodity prices, disruptions in supply chains, political uprisings and natural disasters.
Increasing attention on companies’ cash generation and liquidity position has led financial statement users, regulators and other commentators to focus increasingly on the Statement of Cash Flows. However, this additional focus and scrutiny has also highlighted some common errors and inconsistencies in its preparation. This Guide aims to remind management of IAS 7's basic requirements; highlight interpretative and practical application issues; and provide insights to address these issues.