Generally, medium-sized and large companies are required to include a statement of Cash Flows in their company accounts unless entitled to an exemption by law. There are two methods you can use the prepare your statement of cash flows according to the International Accounting Standard (IAS) 7. The direct method and the indirect method. Below is the statement of cash flows direct method template.
Success Duo Company Limited
Statement of Cash Flows for the year ended 31 December 20XX
|Cash flows from operating activities|
|Cash receipts from customers||X|
|Cash paid to suppliers and employees||(X)|
|Cash generated from operations||X|
|Income taxes paid||(X)|
|Net cash from operating activities||XX|
|Cash flows from investing activities|
|Acquisition of subsidiary X, net of cash acquired||(X)|
|Purchase of property, plant and equipment||(X)|
|Proceeds from sale of equipment||X|
|Net cash used in investing activities||(XX)|
|Cash flows from financing activities|
|Proceeds from issue of share capital||X|
|Proceeds from long-term borrowings||X|
|Payment of lease liabilities||(X)|
|Net cash used in financing activities||(XX)|
|Net increase in cash and cash equivalents||XX|
|Cash and cash equivalents as at 01 January 20XX (Note 1)||XX|
|Cash and cash equivalents as at 31 December 20XX (Note 1)||XX|
X = incoming cash (X) = outgoing cash
Note 1: The figure shall agree to the cash and cash equivalents (cash in hands and at the bank) reported in your balance for the same accounting period.
If you have any questions about the statement of cash flows direct method template, please write to our accountants.
INDIRECT method cash flows statement template
Click here for the statement of cash flows indirect method template.
Besides, submitting your company accounts with a cash flows statement to Companies House, you must also submit your confirmation statement at least once every 12 months.