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refer to the definition of cash and cash equivalent, according to SFAS 95
paragraph 8 (SFAS 95, 2005), cash and cash equivalents are defined as “a short
term
liquid
investment,
highly
liquid
investments
that
are
readily
convertible
known amounts of cash and which are subject to a significant risk in changes in
value because of changes in interest rates”.
In
the
meantime,
the
history
of
IAS
7
was
started
in
June
1976
with
the
issuance of Exposure Draft
E7 Statement of Source and Application of Funds.
Later,
the
IAS
7
Statement
of
Changes in
Financial
Position
was issued
in
October 1977
in subsequent prior to the issuance of APB 19 in 1971. Next, on
the same month and year of October 1977, Exposure Draft E36 Cash Flow
Statement was
issued
followed by the
issuance of IAS 7 Cash Flow Statements
late in December 1992. Last, the Cash Flow statement was officially re-titled to
Statement
of
Cash
Flows
on
6th
September
2007,
as
a
result
from
the
revision
of IAS 1.
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