Operating, investing, financing

6 min · IAS 7
01 · Concept

IAS 7 requires cash flows to be classified into operating, investing, and financing activities — reconciling profit to cash movement.

  • 01Operating: direct or indirect method (indirect is the norm).
  • 02Investing: PP&E, intangibles, acquisitions, investments.
  • 03Financing: equity issued, dividends, borrowings.