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of <h1>New Accounting Standard Ind AS 007: Classifying Cash Flows for Better Economic Decisions in Financial Reporting</h1> Ind AS 007 - Statement of Cash Flows outlines the objective, scope, and definitions related to cash flow reporting under Indian Accounting Standards. The objective is to provide information on an entity's cash flows to assess its ability to generate and utilize cash, aiding in economic decision-making. Entities must prepare a statement of cash flows, classifying cash flows into operating, investing, and financing activities. Definitions include cash, cash equivalents, and short-term investments, with examples like government securities and treasury bills. Cash equivalents are short-term, highly liquid investments with minimal risk of value change.
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