IAS 7 Encourages, but Does NOT Require, the Disclosure Of

question 18

Multiple Choice

IAS 7 encourages, but does NOT require, the disclosure of:
I the amount of undrawn borrowing facilities that may be available for future operating activities and to settle capital commitments, indicating any restrictions on the use of these facilities
II the aggregate amount of cash flows that represent increases in operating capacity separately from those cash flows that are required to maintain operating capacity
III the amount of the cash flows arising from the operating, investing and financing activities of each reportable segment
IV the name(s) of the entity's banks

• A) I, II and IV;
• B) II, III and IV;
• C) I, III and IV;
• D) I, II and III.

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Definitions:

Accounting Standards

Rules and guidelines that prescribe the specific accounting methods and procedures to present financial statements accurately and consistently.

Investing Section

Part of a cash flow statement that shows the cash spent on and received from investment activities, indicating how a company is allocating its resources for growth.

Statement of Cash Flows

A financial report that provides a summary of a company's cash inflows and outflows over a specific period.

Tangible Capital Assets

Physical assets owned by a business that are used in its operation and have a useful life longer than one fiscal year, such as buildings and machinery.