Profit is Prince, but cash is King – a conversation about the statement of cash flows

  • Presenters: Anton van Wyk CA(SA) and Karen van Wyk CA(SA) 
  • Level: Advanced
  • Study time: 1 Hour
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Course overview
In this learning engagement, join Anton van Wyk CA(SA) and Karen van Wyk CA(SA) to explore the most important principles contained in Section 7 of the IFRS for SMEs – the statement of cash flows. Get answers to your questions, such as:
  • What is the starting point when preparing a statement of cash flows?
  • What actually forms part of the term “cash and cash equivalents”?
  • Do I use the direct or indirect method of presenting the statement, and what are the differences?
  • Which transactions belong in the cash flows from operating activities section?
  • Which transactions belong in the cash flows from investing activities section?
  • Which transactions belong in the cash flows from financing activities section?
The statement of cash flows is actually the result once the accrual basis of accounting, on which the annual financial statements are prepared, is reversed, and focus is only placed on cash-related movements for the financial period. This very important statement may just hold the answer as to whether or not a highly profitable entity is actually financially healthy!
In completing this learning engagement, you will have developed the professional competencies in the green section below.

Link with SAICA Competency Framework

Link with SAICA Competency Framework