The Accounting Standard AASB 107: Statement of Cash Flows is applicable to all reporting entities. This disclosure requires the movements in cash and distinguishes between cash flows from business and other areas of business. Prior to 2010, the disclosure was known as a Cash Flow Statement.
This report has been included for all compliance reports for all entities but will print only when DB.#EntityDetails.ReportingExtraDetails.CashFlowReport = “Yes“. It will be titled Statement of Cash Flows for reporting and large non-reporting entities and Cash Flow Statement for all other entities.
There are no mandatory descriptions for items within operating or other appropriate classifications of cash flows. The accounting standard suggests that most profit-seeking entities would classify cash flows as being operating, investing and financing.
The master format provided includes these three broad categories, and the items within these categories are described using relevant wording to suit most situations. These descriptions can be easily altered if required.
Additionally, it is up to the person who prepares the Statement of Cash Flows to determine which categories these items shall be disclosed in.
This report can be produced using the general ledger cash values or by entering manual values to the Database Map. For correct production using values from the general ledger, all transactions must be entered as a Cash transaction type.
Manual values from the DB.CashFlow will be used if DB.#EntityDetails.ReportingExtraDetails.CashFlowDatabase = “Yes“. Relevant amounts and their associated descriptions will need to be entered.
Additional disclosure is required by way of note in Notes to the Financial Statements - Cash Flow Information, which discloses the Reconciliation of Cash. This information can be obtained from the general ledger using automatic cash transaction balances or by entering the relevant data to DB.CashFlow. Both methods will require the completion of DB.Notes.CashFlowReconciliation for complete disclosure of this note.