1

Myanmar Accounting Standard 7

STATEMENT OF CASH FLOWS
Statement of Cash Flows
CONTENTS
paragraphs
OBJECTIVE
SCOPE 13
BENEFITS OF CAS F!O" INFO#MATION $%
&EFINITIONS '(
Ca)* and ca)* +,ui-a.+nt) 7(
P#ESENTATION OF A STATEMENT OF CAS
F!O"S
1/17
O0+rating acti-iti+) 131%
In-+)ting acti-iti+) 1'
Financing acti-iti+) 17
#EPO#TIN1 CAS F!O"S F#OM OPE#ATIN1
ACTIVITIES
123/
#EPO#TIN1 CAS F!O"S F#OM INVESTIN1 AN&
FINANCIN1 ACTIVITIES
31
#EPO#TIN1 CAS F!O"S ON A NET BASIS 333$
FO#EI1N C4##ENC5 CAS F!O"S 3%32
INTE#EST AN& &IVI&EN&S 313$
TA6ES ON INCOME 3%3'
INVESTMENTS IN S4BSI&IA#IES7 ASSOCIATES
AN& JOINT VENT4#ES
3732
CAN1ES IN O"NE#SIP INTE#ESTS IN
S4BSI&IA#IES AN& OTE# B4SINESSES
3($3B
NON8CAS T#ANSACTIONS $3$$
COMPONENTS OF CAS AN& CAS E94IVA!ENTS $%$7
OTE# &ISC!OS4#ES $2%3
APPEN&ICES
A Stat+m+nt o: ca)* :.o;) :or an +ntity ot*+r t*an a :inancia. in)titution
B Stat+m+nt o: ca)* :.o;) :or a :inancia. in)titution
Myanmar Financial Reporting Standards/MAS7
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Myanmar Accounting Standard 7
Statement of Cash Flows
O<=+cti-+
Information about the cash flows of an entity is useful in providing users of financial statements with a basis to
assess the ability of the entity to generate cash and cash equivalents and the needs of the entity to utilise those cash
flows. The economic decisions that are taken by users require an evaluation of the ability of an entity to generate
cash and cash equivalents and the timing and certainty of their generation.
The objective of this Standard is to require the provision of information about the historical changes in cash and cash
equivalents of an entity by means of a statement of cash flows which classifies cash flows during the period from
operating investing and financing activities.
Sco0+
1 An +ntity )*a.. 0r+0ar+ a )tat+m+nt o: ca)* :.o;) in accordanc+ ;it* t*+ r+,uir+m+nt) o: t*i)
Standard and )*a.. 0r+)+nt it a) an int+gra. 0art o: it) :inancia. )tat+m+nt) :or +ac* 0+riod :or ;*ic*
:inancia. )tat+m+nt) ar+ 0r+)+nt+d>
! "#eleted$
% &sers of an entity's financial statements are interested in how the entity generates and uses cash and cash
equivalents. This is the case regardless of the nature of the entity's activities and irrespective of whether
cash can be viewed as the product of the entity as may be the case with a financial institution. (ntities
need cash for essentially the same reasons however different their principal revenue)producing activities
might be. They need cash to conduct their operations to pay their obligations and to provide returns to
their investors. *ccordingly this Standard requires all entities to present a statement of cash flows.
B+n+:it) o: ca)* :.o; in:ormation
+ * statement of cash flows when used in conjunction with the rest of the financial statements provides
information that enables users to evaluate the changes in net assets of an entity its financial structure
"including its liquidity and solvency$ and its ability to affect the amounts and timing of cash flows in order
to adapt to changing circumstances and opportunities. Cash flow information is useful in assessing the
ability of the entity to generate cash and cash equivalents and enables users to develop models to assess
and compare the present value of the future cash flows of different entities. It also enhances the
comparability of the reporting of operating performance by different entities because it eliminates the
effects of using different accounting treatments for the same transactions and events.
, -istorical cash flow information is often used as an indicator of the amount timing and certainty of future
cash flows. It is also useful in checking the accuracy of past assessments of future cash flows and in
e.amining the relationship between profitability and net cash flow and the impact of changing prices.
&+:inition)
' T*+ :o..o;ing t+rm) ar+ u)+d in t*i) Standard ;it* t*+ m+aning) )0+ci:i+d?
Cash com0ri)+) ca)* on *and and d+mand d+0o)it)>
Cash equivalents ar+ )*ort8t+rm7 *ig*.y .i,uid in-+)tm+nt) t*at ar+ r+adi.y con-+rti<.+ to @no;n
amount) o: ca)* and ;*ic* ar+ )u<=+ct to an in)igni:icant ri)@ o: c*ang+) in -a.u+>
Myanmar Financial Reporting Standards/MAS7
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Cash flows ar+ in:.o;) and out:.o;) o: ca)* and ca)* +,ui-a.+nt)>
Operating ativities ar+ t*+ 0rinci0a. r+-+nu+80roducing acti-iti+) o: t*+ +ntity and ot*+r acti-iti+)
t*at ar+ not in-+)ting or :inancing acti-iti+)>
!nvesting ativities ar+ t*+ ac,ui)ition and di)0o)a. o: .ong8t+rm a))+t) and ot*+r in-+)tm+nt) not
inc.ud+d in ca)* +,ui-a.+nt)>
Finaning ativities ar+ acti-iti+) t*at r+)u.t in c*ang+) in t*+ )iA+ and com0o)ition o: t*+
contri<ut+d +,uity and <orro;ing) o: t*+ +ntity>
Ca)* and ca)* +,ui-a.+nt)
/ Cash equivalents are held for the purpose of meeting short)term cash commitments rather than for
investment or other purposes. For an investment to qualify as a cash equivalent it must be readily
convertible to a known amount of cash and be subject to an insignificant risk of changes in value.
Therefore an investment normally qualifies as a cash equivalent only when it has a short maturity of say
three months or less from the date of acquisition. (quity investments are e.cluded from cash equivalents
unless they are in substance cash equivalents for e.ample in the case of preferred shares acquired within
a short period of their maturity and with a specified redemption date.
0 1ank borrowings are generally considered to be financing activities. -owever in some countries bank
overdrafts which are repayable on demand form an integral part of an entity2s cash management. In these
circumstances bank overdrafts are included as a component of cash and cash equivalents. * characteristic
of such banking arrangements is that the bank balance often fluctuates from being positive to overdrawn.
3 Cash flows e.clude movements between items that constitute cash or cash equivalents because these
components are part of the cash management of an entity rather than part of its operating investing and
financing activities. Cash management includes the investment of e.cess cash in cash equivalents.
Pr+)+ntation o: a )tat+m+nt o: ca)* :.o;)
1/ T*+ )tat+m+nt o: ca)* :.o;) )*a.. r+0ort ca)* :.o;) during t*+ 0+riod c.a))i:i+d <y o0+rating7
in-+)ting and :inancing acti-iti+)>
44 *n entity presents its cash flows from operating investing and financing activities in a manner which is
most appropriate to its business. Classification by activity provides information that allows users to assess
the impact of those activities on the financial position of the entity and the amount of its cash and cash
equivalents. This information may also be used to evaluate the relationships among those activities.
4! * single transaction may include cash flows that are classified differently. For e.ample when the cash
repayment of a loan includes both interest and capital the interest element may be classified as an
operating activity and the capital element is classified as a financing activity.
O0+rating acti-iti+)
4% The amount of cash flows arising from operating activities is a key indicator of the e.tent to which the
operations of the entity have generated sufficient cash flows to repay loans maintain the operating
capability of the entity pay dividends and make new investments without recourse to e.ternal sources of
financing. Information about the specific components of historical operating cash flows is useful in
conjunction with other information in forecasting future operating cash flows.
4+ Cash flows from operating activities are primarily derived from the principal revenue)producing activities
of the entity. Therefore they generally result from the transactions and other events that enter into the
determination of profit or loss. (.amples of cash flows from operating activities are5
"a$ cash receipts from the sale of goods and the rendering of services6
"b$ cash receipts from royalties fees commissions and other revenue6
"c$ cash payments to suppliers for goods and services6
Myanmar Financial Reporting Standards/MAS7
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"d$ cash payments to and on behalf of employees6
"e$ cash receipts and cash payments of an insurance entity for premiums and claims annuities and
other policy benefits6
"f$ cash payments or refunds of income ta.es unless they can be specifically identified with
financing and investing activities6 and
"g$ cash receipts and payments from contracts held for dealing or trading purposes.
Some transactions such as the sale of an item of plant may give rise to a gain or loss that is included in
recognised profit or loss. The cash flows relating to such transactions are cash flows from investing
activities. -owever cash payments to manufacture or acquire assets held for rental to others and
subsequently held for sale as described in paragraph 70* of 8*S 47 Property, Plant and Equipment are
cash flows from operating activities. The cash receipts from rents and subsequent sales of such assets are
also cash flows from operating activities.
4, *n entity may hold securities and loans for dealing or trading purposes in which case they are similar to
inventory acquired specifically for resale. Therefore cash flows arising from the purchase and sale of
dealing or trading securities are classified as operating activities. Similarly cash advances and loans made
by financial institutions are usually classified as operating activities since they relate to the main revenue)
producing activity of that entity.
In-+)ting acti-iti+)
47 The separate disclosure of cash flows arising from investing activities is important because the cash flows
represent the e.tent to which e.penditures have been made for resources intended to generate future
income and cash flows. (.amples of cash flows arising from investing activities are5
"a$ cash payments to acquire property plant and equipment intangibles and other long)term assets.
These payments include those relating to capitalised development costs and self)constructed
property plant and equipment6
"b$ cash receipts from sales of property plant and equipment intangibles and other long)term assets6
"c$ cash payments to acquire equity or debt instruments of other entities and interests in joint
ventures "other than payments for those instruments considered to be cash equivalents or those
held for dealing or trading purposes$6
"d$ cash receipts from sales of equity or debt instruments of other entities and interests in joint
ventures "other than receipts for those instruments considered to be cash equivalents and those
held for dealing or trading purposes$6
"e$ cash advances and loans made to other parties "other than advances and loans made by a
financial institution$6
"f$ cash receipts from the repayment of advances and loans made to other parties "other than
advances and loans of a financial institution$6
"g$ cash payments for futures contracts forward contracts option contracts and swap contracts
e.cept when the contracts are held for dealing or trading purposes or the payments are classified
as financing activities6 and
"h$ cash receipts from futures contracts forward contracts option contracts and swap contracts
e.cept when the contracts are held for dealing or trading purposes or the receipts are classified
as financing activities.
9hen a contract is accounted for as a hedge of an identifiable position the cash flows of the contract are
classified in the same manner as the cash flows of the position being hedged.
Financing acti-iti+)
Myanmar Financial Reporting Standards/MAS7
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4/ The separate disclosure of cash flows arising from financing activities is important because it is useful in
predicting claims on future cash flows by providers of capital to the entity. (.amples of cash flows arising
from financing activities are5
"a$ cash proceeds from issuing shares or other equity instruments6
"b$ cash payments to owners to acquire or redeem the entity's shares6
"c$ cash proceeds from issuing debentures loans notes bonds mortgages and other short or long)
term borrowings6
"d$ cash repayments of amounts borrowed6 and
"e$ cash payments by a lessee for the reduction of the outstanding liability relating to a finance lease.
#+0orting ca)* :.o;) :rom o0+rating acti-iti+)
12 An +ntity )*a.. r+0ort ca)* :.o;) :rom o0+rating acti-iti+) u)ing +it*+r?
BaC t*+ dir+ct m+t*od7 ;*+r+<y ma=or c.a))+) o: gro)) ca)* r+c+i0t) and gro)) ca)* 0aym+nt)
ar+ di)c.o)+dD or
B<C t*+ indir+ct m+t*od7 ;*+r+<y 0ro:it or .o)) i) ad=u)t+d :or t*+ +::+ct) o: tran)action) o: a
non8ca)* natur+7 any d+:+rra.) or accrua.) o: 0a)t or :utur+ o0+rating ca)* r+c+i0t) or
0aym+nt)7 and it+m) o: incom+ or +E0+n)+ a))ociat+d ;it* in-+)ting or :inancing ca)*
:.o;)>
43 (ntities are encouraged to report cash flows from operating activities using the direct method. The direct
method provides information which may be useful in estimating future cash flows and which is not
available under the indirect method. &nder the direct method information about major classes of gross
cash receipts and gross cash payments may be obtained either5
"a$ from the accounting records of the entity6 or
"b$ by adjusting sales cost of sales "interest and similar income and interest e.pense and similar
charges for a financial institution$ and other items in the statement of comprehensive income for5
"i$ changes during the period in inventories and operating receivables and payables6
"ii$ other non)cash items6 and
"iii$ other items for which the cash effects are investing or financing cash flows.
!: &nder the indirect method the net cash flow from operating activities is determined by adjusting profit or
loss for the effects of5
"a$ changes during the period in inventories and operating receivables and payables6
"b$ non)cash items such as depreciation provisions deferred ta.es unrealised foreign currency
gains and losses and undistributed profits of associates6 and
"c$ all other items for which the cash effects are investing or financing cash flows.
*lternatively the net cash flow from operating activities may be presented under the indirect method by
showing the revenues and e.penses disclosed in the statement of comprehensive income and the changes
during the period in inventories and operating receivables and payables.
#+0orting ca)* :.o;) :rom in-+)ting and :inancing acti-iti+)
31 An +ntity )*a.. r+0ort )+0arat+.y ma=or c.a))+) o: gro)) ca)* r+c+i0t) and gro)) ca)* 0aym+nt)
ari)ing :rom in-+)ting and :inancing acti-iti+)7 +Ec+0t to t*+ +Et+nt t*at ca)* :.o;) d+)cri<+d in
0aragra0*) 33 and 3$ ar+ r+0ort+d on a n+t <a)i)>
#+0orting ca)* :.o;) on a n+t <a)i)
Myanmar Financial Reporting Standards/MAS7
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33 Ca)* :.o;) ari)ing :rom t*+ :o..o;ing o0+rating7 in-+)ting or :inancing acti-iti+) may <+ r+0ort+d on
a n+t <a)i)?
BaC ca)* r+c+i0t) and 0aym+nt) on <+*a.: o: cu)tom+r) ;*+n t*+ ca)* :.o;) r+:.+ct t*+ acti-iti+)
o: t*+ cu)tom+r rat*+r t*an t*o)+ o: t*+ +ntityD and
B<C ca)* r+c+i0t) and 0aym+nt) :or it+m) in ;*ic* t*+ turno-+r i) ,uic@7 t*+ amount) ar+ .arg+7
and t*+ maturiti+) ar+ )*ort>
!% (.amples of cash receipts and payments referred to in paragraph !!"a$ are5
"a$ the acceptance and repayment of demand deposits of a bank6
"b$ funds held for customers by an investment entity6 and
"c$ rents collected on behalf of and paid over to the owners of properties.
(.amples of cash receipts and payments referred to in paragraph !!"b$ are advances made for and the
repayment of5
"a$ principal amounts relating to credit card customers6
"b$ the purchase and sale of investments6 and
"c$ other short)term borrowings for e.ample those which have a maturity period of three months or
less.
3$ Ca)* :.o;) ari)ing :rom +ac* o: t*+ :o..o;ing acti-iti+) o: a :inancia. in)titution may <+ r+0ort+d on
a n+t <a)i)?
BaC ca)* r+c+i0t) and 0aym+nt) :or t*+ acc+0tanc+ and r+0aym+nt o: d+0o)it) ;it* a :iE+d
maturity dat+D
B<C t*+ 0.ac+m+nt o: d+0o)it) ;it* and ;it*dra;a. o: d+0o)it) :rom ot*+r :inancia. in)titution)D
and
BcC ca)* ad-anc+) and .oan) mad+ to cu)tom+r) and t*+ r+0aym+nt o: t*o)+ ad-anc+) and
.oan)>
For+ign curr+ncy ca)* :.o;)
3% Ca)* :.o;) ari)ing :rom tran)action) in a :or+ign curr+ncy )*a.. <+ r+cord+d in an +ntityF) :unctiona.
curr+ncy <y a00.ying to t*+ :or+ign curr+ncy amount t*+ +Ec*ang+ rat+ <+t;++n t*+ :unctiona.
curr+ncy and t*+ :or+ign curr+ncy at t*+ dat+ o: t*+ ca)* :.o;>
3' T*+ ca)* :.o;) o: a :or+ign )u<)idiary )*a.. <+ tran).at+d at t*+ +Ec*ang+ rat+) <+t;++n t*+
:unctiona. curr+ncy and t*+ :or+ign curr+ncy at t*+ dat+) o: t*+ ca)* :.o;)>
!/ Cash flows denominated in a foreign currency are reported in a manner consistent with 8*S !4 The
Effects of Changes in Foreign Exchange Rates. This permits the use of an e.change rate that appro.imates
the actual rate. For e.ample a weighted average e.change rate for a period may be used for recording
foreign currency transactions or the translation of the cash flows of a foreign subsidiary. -owever 8*S
!4 does not permit use of the e.change rate at the end of the reporting period when translating the cash
flows of a foreign subsidiary.
!0 &nrealised gains and losses arising from changes in foreign currency e.change rates are not cash flows.
-owever the effect of e.change rate changes on cash and cash equivalents held or due in a foreign
currency is reported in the statement of cash flows in order to reconcile cash and cash equivalents at the
beginning and the end of the period. This amount is presented separately from cash flows from operating
investing and financing activities and includes the differences if any had those cash flows been reported
at end of period e.change rates.
3( ;#eleted<
%: ;#eleted<
Myanmar Financial Reporting Standards/MAS7
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Int+r+)t and di-id+nd)
31 Ca)* :.o;) :rom int+r+)t and di-id+nd) r+c+i-+d and 0aid )*a.. +ac* <+ di)c.o)+d )+0arat+.y> Eac*
)*a.. <+ c.a))i:i+d in a con)i)t+nt mann+r :rom 0+riod to 0+riod a) +it*+r o0+rating7 in-+)ting or
:inancing acti-iti+)>
%! The total amount of interest paid during a period is disclosed in the statement of cash flows whether it has
been recognised as an e.pense in profit or loss or capitalised in accordance with 8*S !% Borrowing
Costs.
%% Interest paid and interest and dividends received are usually classified as operating cash flows for a
financial institution. -owever there is no consensus on the classification of these cash flows for other
entities. Interest paid and interest and dividends received may be classified as operating cash flows
because they enter into the determination of profit or loss. *lternatively interest paid and interest and
dividends received may be classified as financing cash flows and investing cash flows respectively
because they are costs of obtaining financial resources or returns on investments.
%+ #ividends paid may be classified as a financing cash flow because they are a cost of obtaining financial
resources. *lternatively dividends paid may be classified as a component of cash flows from operating
activities in order to assist users to determine the ability of an entity to pay dividends out of operating cash
flows.
TaE+) on incom+
3% Ca)* :.o;) ari)ing :rom taE+) on incom+ )*a.. <+ )+0arat+.y di)c.o)+d and )*a.. <+ c.a))i:i+d a) ca)*
:.o;) :rom o0+rating acti-iti+) un.+)) t*+y can <+ )0+ci:ica..y id+nti:i+d ;it* :inancing and in-+)ting
acti-iti+)>
%7 Ta.es on income arise on transactions that give rise to cash flows that are classified as operating investing
or financing activities in a statement of cash flows. 9hile ta. e.pense may be readily identifiable with
investing or financing activities the related ta. cash flows are often impracticable to identify and may
arise in a different period from the cash flows of the underlying transaction. Therefore ta.es paid are
usually classified as cash flows from operating activities. -owever when it is practicable to identify the
ta. cash flow with an individual transaction that gives rise to cash flows that are classified as investing or
financing activities the ta. cash flow is classified as an investing or financing activity as appropriate.
9hen ta. cash flows are allocated over more than one class of activity the total amount of ta.es paid is
disclosed.
In-+)tm+nt) in )u<)idiari+)7 a))ociat+) and =oint -+ntur+)
%/ 9hen accounting for an investment in an associate or a subsidiary accounted for by use of the equity or
cost method an investor restricts its reporting in the statement of cash flows to the cash flows between
itself and the investee for e.ample to dividends and advances.
%0 *n entity which reports its interest in a jointly controlled entity "see 8*S %4 Interests in oint !entures$
using proportionate consolidation includes in its consolidated statement of cash flows its proportionate
share of the jointly controlled entity's cash flows. *n entity which reports such an interest using the equity
method includes in its statement of cash flows the cash flows in respect of its investments in the jointly
controlled entity and distributions and other payments or receipts between it and the jointly controlled
entity.
C*ang+) in o;n+r)*i0 int+r+)t) in )u<)idiari+) and ot*+r <u)in+))+)
3( T*+ aggr+gat+ ca)* :.o;) ari)ing :rom o<taining and .o)ing contro. o: )u<)idiari+) or ot*+r
<u)in+))+) )*a.. <+ 0r+)+nt+d )+0arat+.y and c.a))i:i+d a) in-+)ting acti-iti+)>
Myanmar Financial Reporting Standards/MAS7
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$/ An +ntity )*a.. di)c.o)+7 in aggr+gat+7 in r+)0+ct o: <ot* o<taining and .o)ing contro. o: )u<)idiari+)
or ot*+r <u)in+))+) during t*+ 0+riod +ac* o: t*+ :o..o;ing?
BaC t*+ tota. con)id+ration 0aid or r+c+i-+dD
B<C t*+ 0ortion o: t*+ con)id+ration con)i)ting o: ca)* and ca)* +,ui-a.+nt)D
BcC t*+ amount o: ca)* and ca)* +,ui-a.+nt) in t*+ )u<)idiari+) or ot*+r <u)in+))+) o-+r ;*ic*
contro. i) o<tain+d or .o)tD and
BdC t*+ amount o: t*+ a))+t) and .ia<i.iti+) ot*+r t*an ca)* or ca)* +,ui-a.+nt) in t*+
)u<)idiari+) or ot*+r <u)in+))+) o-+r ;*ic* contro. i) o<tain+d or .o)t7 )ummari)+d <y +ac*
ma=or cat+gory>
+4 The separate presentation of the cash flow effects of obtaining or losing control of subsidiaries or other
businesses as single line items together with the separate disclosure of the amounts of assets and liabilities
acquired or disposed of helps to distinguish those cash flows from the cash flows arising from the other
operating investing and financing activities. The cash flow effects of losing control are not deducted from
those of obtaining control.
+! The aggregate amount of the cash paid or received as consideration for obtaining or losing control of
subsidiaries or other businesses is reported in the statement of cash flows net of cash and cash equivalents
acquired or disposed of as part of such transactions events or changes in circumstances.
+!* Cash flows arising from changes in ownership interests in a subsidiary that do not result in a loss of
control shall be classified as cash flows from financing activities.
+!1 Changes in ownership interests in a subsidiary that do not result in a loss of control such as the subsequent
purchase or sale by a parent of a subsidiary's equity instruments are accounted for as equity transactions
"see 8*S !/ Consolidated and "eparate Financial "tatements "as amended in !::0$$. *ccordingly the
resulting cash flows are classified in the same way as other transactions with owners described in
paragraph 4/.
Non8ca)* tran)action)
$3 In-+)ting and :inancing tran)action) t*at do not r+,uir+ t*+ u)+ o: ca)* or ca)* +,ui-a.+nt) )*a.. <+
+Ec.ud+d :rom a )tat+m+nt o: ca)* :.o;)> Suc* tran)action) )*a.. <+ di)c.o)+d +.)+;*+r+ in t*+
:inancia. )tat+m+nt) in a ;ay t*at 0ro-id+) a.. t*+ r+.+-ant in:ormation a<out t*+)+ in-+)ting and
:inancing acti-iti+)>
++ 8any investing and financing activities do not have a direct impact on current cash flows although they do
affect the capital and asset structure of an entity. The e.clusion of non)cash transactions from the
statement of cash flows is consistent with the objective of a statement of cash flows as these items do not
involve cash flows in the current period. (.amples of non)cash transactions are5
"a$ the acquisition of assets either by assuming directly related liabilities or by means of a finance
lease6
"b$ the acquisition of an entity by means of an equity issue6 and
"c$ the conversion of debt to equity.
Com0on+nt) o: ca)* and ca)* +,ui-a.+nt)
$% An +ntity )*a.. di)c.o)+ t*+ com0on+nt) o: ca)* and ca)* +,ui-a.+nt) and )*a.. 0r+)+nt a
r+conci.iation o: t*+ amount) in it) )tat+m+nt o: ca)* :.o;) ;it* t*+ +,ui-a.+nt it+m) r+0ort+d in t*+
)tat+m+nt o: :inancia. 0o)ition>
+7 In view of the variety of cash management practices and banking arrangements around the world and in
order to comply with 8*S 4 Presentation of Financial "tatements an entity discloses the policy which it
adopts in determining the composition of cash and cash equivalents.
Myanmar Financial Reporting Standards/MAS7
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+/ The effect of any change in the policy for determining components of cash and cash equivalents for
e.ample a change in the classification of financial instruments previously considered to be part of an
entity's investment portfolio is reported in accordance with 8*S 0 #ccounting Policies, Changes in
#ccounting Estimates and Errors.
Ot*+r di)c.o)ur+)
$2 An +ntity )*a.. di)c.o)+7 tog+t*+r ;it* a comm+ntary <y manag+m+nt7 t*+ amount o: )igni:icant ca)*
and ca)* +,ui-a.+nt <a.anc+) *+.d <y t*+ +ntity t*at ar+ not a-ai.a<.+ :or u)+ <y t*+ grou0>
+3 There are various circumstances in which cash and cash equivalent balances held by an entity are not
available for use by the group. (.amples include cash and cash equivalent balances held by a subsidiary
that operates in a country where e.change controls or other legal restrictions apply when the balances are
not available for general use by the parent or other subsidiaries.
,: *dditional information may be relevant to users in understanding the financial position and liquidity of an
entity. #isclosure of this information together with a commentary by management is encouraged and may
include5
"a$ 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 facilities6
"b$ the aggregate amounts of the cash flows from each of operating investing and financing
activities related to interests in joint ventures reported using proportionate consolidation6
"c$ the aggregate amount of cash flows that represent increases in operating capacity separately from
those cash flows that are required to maintain operating capacity6 and
"d$ the amount of the cash flows arising from the operating investing and financing activities of
each reportable segment "see 8F=S 0 $perating "egments$.
,4 The separate disclosure of cash flows that represent increases in operating capacity and cash flows that are
required to maintain operating capacity is useful in enabling the user to determine whether the entity is
investing adequately in the maintenance of its operating capacity. *n entity that does not invest adequately
in the maintenance of its operating capacity may be prejudicing future profitability for the sake of current
liquidity and distributions to owners.
,! The disclosure of segmental cash flows enables users to obtain a better understanding of the relationship
between the cash flows of the business as a whole and those of its component parts and the availability and
variability of segmental cash flows.
Myanmar Financial Reporting Standards/MAS7
1
A00+ndiE A Stat+m+nt o: ca)* :.o;) :or an +ntity ot*+r t*an a :inancia. in)titution
This appendix accompanies, %ut is not part of, &#" '(
4 The e.amples show only current period amounts. Corresponding amounts for the preceding period are
required to be presented in accordance with 8*S 4 Presentation of Financial "tatements.
! Information from the statement of comprehensive income and statement of financial position is provided
to show how the statements of cash flows under the direct method and indirect method have been derived.
>either the statement of comprehensive income nor the statement of financial position is presented in
conformity with the disclosure and presentation requirements of other Standards.
% The following additional information is also relevant for the preparation of the statements of cash flows5
? all of the shares of a subsidiary were acquired for ,3:. The fair values of assets acquired and liabilities
assumed were as follows5
Inventories 4::
*ccounts receivable 4::
Cash +:
@roperty plant and equipment 7,:
Trade payables 4::
Aong)term debt !::
? !,: was raised from the issue of share capital and a further !,: was raised from long)
term borrowings.
? interest e.pense was +:: of which 4/: was paid during the period. *lso 4:: relating to interest
e.pense of the prior period was paid during the period.
? dividends paid were 4!::.
? the liability for ta. at the beginning and end of the period was 4::: and +:: respectively.
#uring the period a further !:: ta. was provided for. 9ithholding ta. on dividends received
amounted to 4::.
? during the period the group acquired property plant and equipment with an aggregate cost of
4!,: of which 3:: was acquired by means of finance leases. Cash payments of %,: were made
to purchase property plant and equipment.
? plant with original cost of 0: and accumulated depreciation of 7: was sold for !:.
? accounts receivable as at the end of !:B! include 4:: of interest receivable.
Myanmar Financial Reporting Standards/MAS7
11
Con)o.idat+d )tat+m+nt o: com0r+*+n)i-+ incom+ :or t*+ 0+riod +nd+d 3/63
a
Sales %:7,:
Cost of sales "!7:::$
Cross profit +7,:
#epreciation "+,:$
*dministrative and selling e.penses "34:$
Interest e.pense "+::$
Investment income ,::
Foreign e.change loss "+:$
@rofit before ta.ation %%,:
Ta.es on income "%::$
@rofit %:,:
a
The entity did not recognise any components of other comprehensive income in the period ended !:B!
Con)o.idat+d )tat+m+nt o: :inancia. 0o)ition a) at +nd o: 3/63
3/63 3/61
A))+t)
Cash and cash equivalents !%: 47:
*ccounts receivable 43:: 4!::
Inventory 4::: 43,:
@ortfolio investments !,:: !,::
@roperty plant and equipment at cost %/%: 434:
*ccumulated depreciation "4+,:$ "4:7:$
@roperty plant and equipment net !!0: 0,:
Total assets /34: 777:
Myanmar Financial Reporting Standards/MAS7
12
!ia<i.iti+)
Trade payables !,: 403:
Interest payable !%: 4::
Income ta.es payable +:: 4:::
Aong)term debt !%:: 4:+:
Total liabilities %40: +:%:
S*ar+*o.d+r)F +,uity
Share capital 4,:: 4!,:
=etained earnings %!%: 4%0:
Total shareholders' equity +/%: !7%:
Total liabilities and shareholders' equity /34: 777:
&ir+ct m+t*od )tat+m+nt o: ca)* :.o;) B0aragra0* 12BaCC
3/63
Ca)* :.o;) :rom o0+rating acti-iti+)
Cash receipts from customers
%:4,:
Cash paid to suppliers and employees
"!/7::$
Cash generated from operations !,,:
Interest paid
)!/:
Income ta.es paid
)3::
)et cash from operating acti*ities 4%0:
Ca)* :.o;) :rom in-+)ting acti-iti+)
*cquisition of subsidiary B net of cash acquired ">ote *$
),,:
@urchase of property plant and equipment ">ote 1$
"%,:$
Myanmar Financial Reporting Standards/MAS7
13
@roceeds from sale of equipment
!:
Interest received
!::
#ividends received
!::
)et cash used in in*esting acti*ities "+0:$
Ca)* :.o;) :rom :inancing acti-iti+)
@roceeds from issue of share capital
!,:
@roceeds from long)term borrowings
!,:
@ayment of finance lease liabilities
"3:$
#ividends paid
a
"4!::$
>et cash used in financing activities
"/3:$
>et increase in cash and cash equivalents
44:
Cash and cash equivalents at beginning of period ">ote C$
4!:
Cash and cash equivalents at end of period ">ote C$
!%:
a
This could also be shown as an operating cash flow.
Indir+ct m+t*od )tat+m+nt o: ca)* :.o;) B0aragra0* 12B<CC
3/63
Ca)* :.o;) :rom o0+rating acti-iti+)
@rofit before ta.ation
%%,:
*djustments for5
#epreciation
+,:
Foreign e.change loss
+:
Investment income
",::$
Interest e.pense +::
Myanmar Financial Reporting Standards/MAS7
14
%/+:
Increase in trade and other receivables
",::$
#ecrease in inventories
4:,:
#ecrease in trade payables
"4/+:$
Cash generated from operations
!,,:
Interest paid
"!/:$
Income ta.es paid
"3::$
>et cash from operating activities
4%0:
Ca)* :.o;) :rom in-+)ting acti-iti+)
*cquisition of subsidiary B net of cash acquired ">ote *$
",,:$
@urchase of property plant and equipment ">ote 1$
"%,:$
@roceeds from sale of equipment
!:
Interest received
!::
#ividends received
!::
)et cash used in in*esting acti*ities "+0:$
Ca)* :.o;) :rom :inancing acti-iti+)
@roceeds from issue of share capital
!,:
@roceeds from long)term borrowings
!,:
@ayment of finance lease liabilities
"3:$
#ividends paid
a
"4!::$
)et cash used in financing acti*ities "/3:$
N+t incr+a)+ in ca)* and ca)* +,ui-a.+nt) 44:
Ca)* and ca)* +,ui-a.+nt) at <+ginning o: 0+riod BNot+ CC 4!:
Ca)* and ca)* +,ui-a.+nt) at +nd o: 0+riod BNot+ CC !%:
Myanmar Financial Reporting Standards/MAS7
15
a
This could also be shown as an operating cash flow.
Not+) to t*+ )tat+m+nt o: ca)* :.o;) Bdir+ct m+t*od and indir+ct m+t*odC
A> O<taining contro. o: )u<)idiary
#uring the period the Croup obtained control of subsidiary B. The fair values of assets acquired and liabilities
assumed were as follows5
Cash +:
Inventories 4::
*ccounts receivable 4::
@roperty plant and equipment 7,:
Trade payables "4::$
Aong)term debt "!::$
Total purchase price paid in cash ,3:
Aess5 Cash of subsidiary B acquired "+:$
Cash paid to obtain control net of cash acquired ,,:
B> Pro0+rty7 0.ant and +,ui0m+nt
#uring the period the Croup acquired property plant and equipment with an aggregate cost of 4!,: of which 3::
was acquired by means of finance leases. Cash payments of %,: were made to purchase property plant and
equipment.
C> Ca)* and ca)* +,ui-a.+nt)
Cash and cash equivalents consist of cash on hand and balances with banks and investments in money market
instruments. Cash and cash equivalents included in the statement of cash flows comprise the following amounts in
the statement of financial position5
3/63 3/61
Cash on hand and balances with banks +: !,
Short)term investments 43: 4%,
Myanmar Financial Reporting Standards/MAS7
16
Cash and cash equivalents as previously
reported
!%: 47:
(ffect of e.change rate changes D "+:$
Cash and cash equivalents as restated !%: 4!:
Cash and cash equivalents at the end of the period include deposits with banks of 4:: held by a subsidiary which are
not freely remissible to the holding company because of currency e.change restrictions.
The Croup has undrawn borrowing facilities of !::: of which /:: may be used only for future e.pansion.
&> S+gm+nt in:ormation
Segment * Segment1 Total
Cash flows from5
Eperating activities 4,!: "4+:$ 4%0:
Investing activities "7+:$ 47: "+0:$
Financing activities ",/:$ "!!:$ "/3:$
%4: "!::$ 44:
A.t+rnati-+ 0r+)+ntation Bindir+ct m+t*odC
*s an alternative in an indirect method statement of cash flows operating profit before working capital changes is
sometimes presented as follows5
=evenues e.cluding investment income %:7,:
Eperating e.pense e.cluding depreciation "!734:$
Eperating profit before working capital changes %/+:
Myanmar Financial Reporting Standards/MAS7
17
A00+ndiE B Stat+m+nt o: ca)* :.o;) :or a :inancia. in)titution
This appendix accompanies, %ut is not part of, &#" '(
4 The e.ample shows only current period amounts. Comparative amounts for the preceding period are required to be
presented in accordance with 8*S 4 Presentation of Financial "tatements.
! The e.ample is presented using the direct method.
3/63
Ca)* :.o;) :rom o0+rating acti-iti+)
Interest and commission receipts
!0++/
Interest payments
"!%+7%$
=ecoveries on loans previously written off
!%/
Cash payments to employees and suppliers
"33/$
+!!+
+Increase, decrease in operating assets-
Short)term funds
"7,:$
#eposits held for regulatory or monetary control purposes
!%+
Funds advanced to customers
"!00$
>et increase in credit card receivables
"%7:$
Ether short)term negotiable securities
"4!:$
Increase +decrease, in operating lia%ilities-
#eposits from customers
7::
>egotiable certificates of deposit
"!::$
>et cash from operating activities before income ta. %++:
Income ta.es paid "4::$
>et cash from operating activities %%+:
Ca)* :.o;) :rom in-+)ting acti-iti+)
Myanmar Financial Reporting Standards/MAS7
18
#isposal of subsidiary F
,:
#ividends received
!::
Interest received
%::
@roceeds from sales of non)dealing securities
4!::
@urchase of non)dealing securities
"7::$
@urchase of property plant and equipment
",::$
)et cash from in*esting acti*ities 7,:
Ca)* :.o;) :rom :inancing acti-iti+)
Issue of loan capital
4:::
Issue of preference shares by subsidiary undertaking
0::
=epayment of long)term borrowings
"!::$
>et decrease in other borrowings
"4:::$
#ividends paid
"+::$
)et cash from financing acti*ities !::
(ffects of e.change rate changes on cash and cash equivalents
7::
N+t incr+a)+ in ca)* and ca)* +,ui-a.+nt) +/3:
Ca)* and ca)* +,ui-a.+nt) at <+ginning o: 0+riod +:,:
Ca)* and ca)* +,ui-a.+nt) at +nd o: 0+riod 00+:
Myanmar Financial Reporting Standards/MAS7