IAS 7, also known as the International Accounting Standard 7, provides guidance on the preparation of the Statement of Cash Flows. This standard ensures that cash flow information is uniform and comparable across entities, which assists stakeholders in understanding a business's liquidity and financial performance.

IAS 7 requires that cash flows be classified into three categories: operating, investing, and financing activities. For example, cash payments for salaries fall under operating activities, purchases of equipment fall under investing activities, and issuance of shares falls under financing activities.

By adhering to IAS 7, entities are able to present accurate and helpful insights into their cash transactions, enabling investors and other users of financial statements to make informed decisions. Easy Month End facilitates the recording and review of such financial statements, ensuring compliance with standards, including IAS 7.