Summary 
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Compared to IFRS 
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AASB website 

• Cash flows from operating activities are primarily derived from the principal revenue-producing activities of the entity.
 

• Generally cash flows from operating activities result from transactions and events that impact the profit or loss. Examples of operating cash flows include:
• Cash receipts from the sale of goods or rendering of services;
 

• cash payments to suppliers fro goods or services;
 

• Cash payments to employees; and
 

• Cash payments for income tax that cannot be attributed to investing or financing activities.

• Cash receipts/payments for disposal/acquisition of property, plant and equipment and intangibles;
 

• cash receipts/payments for disposal/acquisition of equity or debt instruments of other entities and interests in joint ventures;
 

• Cash receipts/payments in respect of advances and loans made to other parties; and
 

• Cash receipts/payments in respect of derivative contracts other than those held for dealing or trading purposes or classified as financing.

• Cash receipts from share issues;
 

• Cash payments to buyback or redeem shares;
 

• Cash receipts/payments from issuing/repaying debentures, loans, bonds, mortgages and other borrowings

• Cash flows from operating activities can be reported using either the direct method whereby the major classes of gross cash receipts and gross cash payments are shown, or the indirect method, whereby profit or loss is adjusted for the effects of various transactions. When the direct method is used, a reconciliation note (the indirect method) from net profit or loss to cash flows from operating activities is required.
 

• Cash flows from investing and financing activities are only reported on a net basis in two limited circumstances:
• Cash receipts and payments are made on behalf of a customer and therefore represent the customer's transactions rather than the entity’s transactions, for example, rents collected by an agent.
 

• Cash receipts and payments are for items in which the turnover is quick, the amounts are large and the maturities are short, for example, principal amounts relating to credit card customers.
• Foreign currency cash flows must be translated into the functional currency of the entity using exchange rates at the dates of the cash flows. A foreign subsidiary's cash flows must also be translated at the exchange rates between the functional currency and the foreign currency at the dates of the cash flows. An exchange rate that approximates the actual rate, for example a weighted average rate, may be used, consistent with the guidance in AASB 121 The Effects of Changes in Foreign Exchange Rates.
 

• Cash flows from interests and dividends received and paid must be disclosed separately.
 

• Cash flows from income taxes must be disclosed separately and classified as an operating activity, unless it is specifically related to financing or investing activities.
 

• The aggregate cash flows arising from acquisitions and or disposals of subsidiaries or other business units are shown separately and classified as investing but are net of any cash included in the entity acquired or disposed of.

• Details of the acquisitions and disposals of subsidiaries and other business units during the period must be disclosed as follows:
• Total purchase consideration or disposal consideration and the amount discharged in cash or cash equivalents
 

• The amount of cash and cash equivalents in the subsidiary or business unit acquired or disposed of
 

• The amount of the other assets and liabilities of the subsidiary or business unit disposed of summarised by each major category.
• An entity shall disclose the components of cash and cash equivalents and reconcile them to the equivalent items reported in the balance sheet and the accounting policy it adopts in determining these items.
 

• Relevant information must be disclosed investing and financing activities that do not require the use of cash or cash equivalents, for example, the acquisition of an entity by an equity issue.
 

• Disclosure and commentary from management is required of the amount of significant cash and cash equivalent balances that held by the entity but not available for use.