Classification of Cash Flows by Standard Heading
Financing
Financing cash flows comprise receipts or repayment of principle from or to external providers of finance. The cash flows in this section can be shown in a single section with those under “management of liquid resources” provided that separate subtotals for each are given.
Financing cash inflows include:
- Receipts from issuing shares or other equity instruments
- Receipts from issuing debentures, loans and from other long term and short term borrowings (other than overdrafts)
Financing cash outflows include:
- Repayments of amounts borrowed (other than overdrafts)
- The capital element of finance lease rental payments
- Payments to reacquire or redeem the entity’s shares
- Payments of expenses or commission on any issue of equity shares
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