Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p95
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 254449–257321

because it is useful in predicting claims on future cash flows by providers of capital to the entity. Examples of cash flows arising from financing activities are:
(a) cash proceeds from issuing shares or other equity instruments;
(b) cash payments to owners to acquire or redeem the entity's shares;
(c) cash proceeds from issuing debentures, loans, notes, bonds, mortgages and other short-term or long‑term borrowings;
(d) cash repayments of amounts borrowed; and
(e) cash payments by a lessee for the reduction of the outstanding liability relating to a lease;.
(f) cash payments of dividends as described in paragraph 33A; and
(g) cash payments of interest as described in paragraphs 34A–34D.

Reporting cash flows from operating activities
18 An entity shall report cash flows from operating activities using either:
(a) the direct method, whereby major classes of gross cash receipts and gross cash payments are disclosed; or
(b) the indirect method, whereby operating profit or loss is adjusted for:
(i) the effects of transactions of a non‑cash nature;,
(ii) any deferrals or accruals of past or future operating cash receipts or payments;,
(iii) income or expenses classified in the operating category in the statement of profit or loss for which the associated cash flows are classified as cash flows from either investing or financing activities; and
(iv) cash flows from operating activities for which the associated income or expenses are not classified in the operating category of the statement of profit or lossand items of income or expense associated with investing or financing cash flows.
 ...
20 Under the indirect method, the net cash flow from operating activities is determined by adjusting operating profit or loss for the effects of:
(a) changes during the period in inventories and operating receivables and payables;
(b) non‑cash items such as depreciation, provisions and, deferred taxes, unrealised foreign currency gains and losses classified in the operating category, and undistributed profits of associates; and
(c) income or expenses classified in the operating category in the statement of profit or loss all other items for which the cash effects are investing or financing cash flows; and.
(d) operating cash flows, such as income tax (in accordance with paragraph 35), for which the corresponding income or expenses are not classified in the operating category in the statement of profit or loss.
Alternatively, the net cash flow from operating activities may be presented under the indirect method by showing the revenues and expenses classified in the operating category in the statement of profit or loss, disclosed in the statement of comprehensive income and the changes during the period in inventories and operating receivables and payables and any other operating cash flows for which the corresponding income or expenses are