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Acknowledgment
This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard (IAS) 7, Cash Flow Statements, published by the International Accounting Standards Board (IASB). Extracts from IAS 7 are reproduced in this publication of the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) with the permission of the International Financial Reporting Standards (IFRS) Foundation.
The approved text of the International Financial Reporting Standards (IFRSs) is that published by the IASB in the English language, and copies may be obtained directly from IFRS Publications Department, First Floor, 30 Cannon Street, London EC4M 6XH, United Kingdom.
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IFRSs, IASs, Exposure Drafts, and other publications of the IASB are copyright of the IFRS Foundation.
"IFRS," "IAS," "IASB," "IFRS Foundation," "International Accounting Standards," and "International Financial Reporting Standards" are trademarks of the IFRS Foundation and should not be used without the approval of the IFRS Foundation.
History of IPSAS
This version includes amendments resulting from IPSASs issued up to January 15, 2011.
IPSAS 2, Cash Flow Statements was issued in May 2000.
Since then, IPSAS 2 has been amended by the following IPSASs:
* IPSAS 3, Accounting Policies, Changes in Accounting Estimates and Errors (issued December 2006)
* IPSAS 4, The Effects of Changes in Foreign Exchange Rates (issued December 2006)
* Improvements to IPSASs (issued January 2010)
* Improvements to IPSASs (issued November 2010)
International Public Sector Accounting Standard 2, Cash Flow Statements, is set out in the objective and paragraphs 1-64. All the paragraphs have equal authority. IPSAS 2 should be read in the context of its objective and the Preface to International Public Sector Accounting Standards. IPSAS 3, Accounting Policies, Changes in Accounting Estimates and Errors, provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
Objective
The cash flow statement identifies (a) the sources of cash inflows, (b) the items on which cash was expended during the reporting period, and (c) the cash balance as at the reporting date. Information about the cash flows of an entity is useful in providing users of financial statements with information for both accountability and decision-making purposes. Cash flow information allows users to ascertain how a public sector entity raised...