Definitions of Cash Flow Statements :

The following terms are used in this Standard with the meanings specified:

 Cash comprises cash on hand and demand deposits with banks.

Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Cash flows are inflows and outflows of cash and cash equivalents.

 Operating activities are the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities.

 Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

 Financing activities are activities that result in changes in the size and composition of the owners’ capital (including preference share capital in the case of a company) and borrowings of the enterprise.