IAS 7 - cashflow
IAS 7 - cashflow
Hi All, when preparing the cashflow statement, I have a movement of reserve related to employee sharebase (will be equity settled). Should the movement be classified as "cash paid to employee" or "movement of capital"?
Re: IAS 7 - cashflow
Hi,
If this is equity settled, why would you show it in the cash flow statement? It should be a movement in reserves shown in the SOCIE.
If this is equity settled, why would you show it in the cash flow statement? It should be a movement in reserves shown in the SOCIE.
Re: IAS 7 - cashflow
statement of changes in equity.
are you referring to the share based payment charge within P&L? (ie the debit rather than the credit)? if so, add it back as a non-cash movement.
are you referring to the share based payment charge within P&L? (ie the debit rather than the credit)? if so, add it back as a non-cash movement.
Re: IAS 7 - cashflow
Hi JRSB, I refer to the balance sheet item. In doing cash flow statement, I usually take the movement of TB and allocate each of them to correct category.
It also applies to PL too, since this relates to employees payment, it's reasonable to lump it into "payment to employee" but it also has share capital component, so I am not sure which "column" to lump them into
It also applies to PL too, since this relates to employees payment, it's reasonable to lump it into "payment to employee" but it also has share capital component, so I am not sure which "column" to lump them into
Re: IAS 7 - cashflow
You need to address two elements:
1. P/L charge – treat this as a non-cash expense, similar to depreciation.
2. Equity movement: ignore this as it had no effect on P/L and didn't involve any cash flow.
1. P/L charge – treat this as a non-cash expense, similar to depreciation.
2. Equity movement: ignore this as it had no effect on P/L and didn't involve any cash flow.