Statement of cash flows PURPOSE & SCOPE
|
|
- Polly Hopkins
- 5 years ago
- Views:
Transcription
1 IAS 7 Statement of cash flows PURPOSE & SCOPE Purpose Users needs Scope The fundamental purpose of being in business is to generate profit, as this will increase the owners' wealth. Profitability relates to the long term performance of the business and indicates that over the long term a business will generate cash. In the short term, the business' viability is determined by its ability to generate cash. However as an statement of profit or loss is prepared on an accruals basis, the profit for the year is unlikely to correlate with the movement in the company's bank balance. Items such as depreciation, provision movements and impairment of goodwill will mean that profits and cash flows may differ dramatically. Users need to know about the cash generating ability and financial adaptability of an entity, i.e. can the business generate cash and can it alter the timing of its cash flows. If the entity can answer positively, users will be confident about the entity's prospects. Therefore, IAS 7 requires that entities should prepare a statement of cash flows as an integral component of financial statements. DEFINITIONS Cash Cash equivalent Cash flows Operating activities Investing activities Financing activities comprises cash on hand and demand deposits. are short terms, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. are inflows and outflows of cash and cash equivalents. are the principal revenue producing activities of the entity and other activities that are not investing or financing activities. are the acquisition and disposal of long term assets and other investments not included in cash equivalents. are activities that result in changes in the size and composition of the contributed equity and borrowings of the entity. CASH EQUIVALENT An investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of acquisition. Investment in Investments equity shares is not included in cash and cash equivalents, however, investment in redeemable shares may be included if specific redemption date is very close. If the balance of bank overdraft fluctuates normally from positive to negative or Bank vice versa, it is included in cash and cash equivalent. However, if in substance, the overdraft entity is using bank overdraft as short term loan, it should be included in financing activities. Movement Movement within cash and cash equivalent are not presented as cash flows. Page 1 of 14 (kashifadeel.com)
2 Calculate the cash and cash equivalents from the following information: $ Cash in hand 200,000 Cash at bank 140,000 Short term investments (1 month) in government 40,000 treasury bills Trade debts 40,000 Investment in prize bonds 80,000 Other receivables 40,000 Bank overdraft 20,000 EXAMPLE 7A What would be the effect on statement of cash flows of the following transactions? $ Cash deposited in bank account 100,000 Sale of prize bonds 500,000 Investment in treasury bills of government with 60 days 800,000 maturity EXAMPLE 7B Page 2 of 14 (kashifadeel.com)
3 PRESENTATION The statement of cash flows shall report cash flows during the period classified by operating, investing and financing activities. They generally result from the transactions and other events that enter into the determination of profit or loss. Examples of cash flows from operating activities are: (a) Cash receipts from the sale of goods and the rendering of services; (b) Cash receipts from royalties, fees, commissions and other revenue; (c) Cash payments of suppliers for goods and services; (d) Cash payments to and on behalf of employees; Operating (e) Cash receipts and cash payments of an insurance; Activities (f) Cash payments or refunds of income taxes unless they can be specially identified with financing and investing activities; and Investing Activities Financing Activities Some transactions, such as the sale of an item of plant, may give rise to a gain or loss which is included in the determination of profit or loss. However, the cash flows relating to such transactions are cash flows from investing activities. The separate disclosure of cash flows arising from investing activities is important because the cash flows represent the extent to which expenditures have been made for resources intended to generate future income and cash flows. Examples of cash flows arising from investing activities are: (a) Cash payments to acquire PPE, intangibles and other long-term assets including development costs and self-constructed PPE. (b) Cash receipts from sales of PPE, intangibles and other long-term assets; (c) Cash payments to acquire equity or debt instruments of other; (d) Cash receipts from sales of equity or debt instruments of other entities; (e) Cash advances and loans made to other parties. The separate discloser of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of capital to the entity. Examples of cash flows arising from financing activities are: (a) cash proceeds from issuing shares or other equity instruments; (b) cash payment to owners to acquire or redeem the entity s shares; (c) cash proceed from issuing debentures, loans, notes, bonds, and other short or long term borrowings; (d) cash repayment of amounts borrowed, and (e) cash payments by lessee for liability under finance lease. Page 3 of 14 (kashifadeel.com)
4 Identify the following transactions as operating, investing, financing or otherwise: TRANSACTION 1. Cash received from customers 2. Cash sales 3. Cash proceeds from disposal of PPE 4. Right issue of shares 5. Repayment of loan 6. Dividend received by stock market broker 7. Dividend paid 8. Salaries paid to employees 9. Interest on debentures paid 10. Interest received by a trading entity on some investment 11. Interest received by a bank on loans advanced 12. Taxes paid 13. Purchase of a patent and software 14. Advance paid to supplier 15. Depreciation 16. Bonus issue of shares 17. Impairment loss on a plant EXAMPLE 7C ANSWER Page 4 of 14 (kashifadeel.com)
5 REPORTING CASH FLOWS OPERATING CASH FLOWS An entity shall report cash flows from operating activities using either: Direct whereby major classes of gross cash receipts and gross cash payments are method disclosed; or whereby profit or loss is adjusted for the effects of transactions of a non cash nature, Indirect any deferrals or accruals of past or future operating cash receipts or payments, and method items of income or expense associated with investing or financing cash flows. EXAMPLE 7D The following are extracts from the financial statements of Oxygen Limited for the year ended June 30, 2012 and SFP (extracts) $ $ Inventories 230, ,000 Prepayments 14,000 16,000 Trade receivables 52,000 30,000 Cash 15,000 38,000 Trade payables 39,000 44,000 Income tax payable 5,000 4,000 SPL (extracts) Revenue 500,000 Cost of sales (includes depreciation of $ 6,000) (310,000) Gross profit 190,000 Operating expenses (includes depreciation of $ 6,000) (80,000) Finance costs (21,000) Profit before tax 89,000 Taxation (30,000) Profit after tax 59,000 Required: What will be the net cash flow from operating activities under: (a) Indirect method (b) Direct method Page 5 of 14 (kashifadeel.com)
6 Investing and Financing Cash Flows An entity shall report separately major classes of gross cash receipts and gross Generally cash payments arising from investing and financing activities, except to the extent that cash flows described as follows are reported on a net basis. Cash flows arising from the following operating, investing or financing activities may be reported on a net basis: On net basis (a) cash receipts and payments on behalf of customers when the cash flows reflect the activities of the customer rather than those of the entity; and (b) cash receipts and payments for items in which the turnover is quick, the amounts are large, and the maturities are short. EXAMPLE 7E The following are extracts from the financial statements of Nitrogen Limited for the year ended June 30, 2012 and SFP (extracts) $ $ Property, plant and equipment 850, ,000 Intangible assets 0 200,000 Share capital 600, ,000 Share premium 200, ,000 Long term loans 500,000 0 Debentures 100, ,000 Additional information: During the year, right issue of shares was made. Depreciation for the year was $ 200,000. There was no disposal of PPE during the year Intangible asset (patent) was sold at beginning of the year equal to its carrying amount. Required: Present the above transactions in the statement of cash flows. Page 6 of 14 (kashifadeel.com)
7 EXAMPLE 7F The following information relates to running finance of ABC Limited. $ Balance at beginning of month 47,000 Payments 6 January 10, January 25, January 17,000 52,000 Receipts 2 January 7, January 18, January 30,000 55,000 Balance at end of month 44,000 Required: How the above transactions should be treated in statement of cash flows. Page 7 of 14 (kashifadeel.com)
8 INTEREST, DIVIDENDS AND TAXES ON INCOME Classification Consistency Taxes Interest paid and interest and dividends received are usually classified as operating cash flows for a financial institution. However, there is no consensus on the classification of these cash flows for other entities. Cash flows from interest and dividends received and paid shall each be disclosed separately. Each shall be classified in a consistent manner from period to period as operating, investing or financing activities. Cash flows arising from taxes on income shall be separately disclosed and shall be classified as cash flows from operating activities unless they can be specifically identified with financing and investing activities. NON CASH TRANSACTIONS Requirement Examples Investing and financing transaction that do not require the use of cash or cash equivalent shall be excluded from a statement of cash flows. Such transaction shall be disclosed elsewhere in the financial statements in a way that provides all the relevant information about these investing and financing activities. Gain on revaluation Assets acquired under finance lease Depreciation, amortisation and impairment losses Bonus issue of shares Conversion of convertible bonds in shares DISCLOSURE Components of cash and cash equivalents Other disclosures An entity shall disclose the components of cash and cash equivalents and shall present a reconciliation of the amounts in its statement of cash flows with the equivalent items reported in the SFP. An entity shall disclose, together with a commentary by management, the amount of significant cash and cash equivalent balance held by the entity that are not available for use by the group. Page 8 of 14 (kashifadeel.com)
9 INTERPRETATION OF STATEMENT OF CASH FLOWS Cash generation from trading operations Dividends and interest payouts Capital expenditure and financial investment Management of financing Cash flow Cash return on capital employed Cash generated to total debt Operating cash to capital exp. The figure should be compared to the operating profit. The reconciliation note to the SCF is useful in this regard. Overtrading may be indicated by: High profits and low cash generation Large increases in inventory, receivables and payables These can be compared to cash generated from trading operations to see whether the normal operations can sustain such payments. In most years they should. The nature and scale of a company s investment in non current assets is clearly shown. A simple test may be to compare investment and depreciation. If investment is > depreciation, the company is investing at a greater rate than its current assets are wearing out this suggests expansion. If investment = depreciation, the company is investing in new assets as existing ones wear out. The company appears stable. If investment < depreciation, the non current asset base of the company is not being maintained. This is potentially worrying as non current assets are generators of profit. The changes in financing (in pure cash terms) are clearly shown. There may be a note to the statement of cash flows which links the inflows/outflows with the movement in the statement of financial position. There may be significant non cash flow changes in the capital structure of business. Gearing can be considered at this point. The statement clearly shows the end result in cash terms of the company s operations in the year. Do not overstate the importance of this figure alone, however. A decrease in cash in the year may be for very sound reasons (e.g. there were surplus cash last year) or may be mainly the result of timing (e.g. a new loan was raised just after the end of accounting period). To help in determining the future cash position, other areas of the published accounts should also be considered. Cash generated from operations x 100% Total assets less current liabilities Cash generated from operations Total debt Net cash from operating activities x 100% Net capital expenditure Page 9 of 14 (kashifadeel.com)
10 FORMAT AND GUIDANCE [Entity Name] Statement of cash flows For the year ended [date here] Cash flows from operating activities: <Direct method> $ 000 Cash receipts from customers Note 1 XXX Cash paid to suppliers, employees and for expenses Note 2 (XXX) Cash generated from operations XXX Interest paid Pension benefits paid Income tax paid Net cash from (used in) operating activities A XXX Cash flows from operating activities: <Indirect method> $ 000 Profit before tax Note 3 XXX Adjustments for: Note 4 [non-cash income and expenses included in SPL] XX/ [items of income and expenses relating to investing or financing activity but included in SPL] XX/ [post-employment benefit expense, finance income and expense] XX/ Operating profit before working capital changes XXX [increase on decrease in current assets and liabilities] Note 5 XX/ Cash generated from operations XXX Interest paid Pension benefits paid Income tax paid Net cash from (used in) operating activities A XXX Cash flows from investing activities: Purchase of non-current assets or short term investment (on cash basis) (XXX) Disposal of non-current assets or short term investment (on cash basis) XX Investment income (on cash basis) XX Net cash from (used in) investing activities B (XXX) Cash flows from financing activities: Cash proceeds from share issue, loan issue and borrowings XXX Cash paid for share re-purchase, loan and borrowings repayment Interest paid on borrowings/dividend paid Net cash from financing activities C XXX Net decrease in cash and cash equivalents A+B+C XXX Cash and cash equivalents at beginning of the year SFP XX Cash and cash equivalents at end of the year SFP XX Page 10 of 14 (kashifadeel.com)
11 NOTE 1 Revenue (Cash + Credit) (Increase)/decrease in trade receivables $ XXX XX/ XXX NOTE 2 All expenses and incomes in SPL for profit before tax excluding revenue [non-cash income and expenses included in SPL] [items of income and expenses relating to investing or financing activity but included in SPL] [post-employment benefit expense, finance income and expense] [increase on decrease in current assets and liabilities excluding trade receivables] $ (XXX) XX/ XX/ XX/ XX/(XXX) (XXX) NOTE 3 If profit in not given in the question (for indirect method), it is usually determined by reconciling retained earnings. Profit before tax is to be taken for starting statement of cash flows under indirect method. NOTE 4 Expenses add back in profit Incomes less back from profit NOTE 5 Include increase/decrease in inventory, prepayments, advances, receivables, trade payables, Accrued expenses. Exclude Cash, Investment, borrowings, interest payable, tax payable, and bank overdraft. Cash inflow increase in liability, decrease in asset Cash outflow increase in asset, decrease in liability ADDITIONAL NOTE 6 Some T accounts should be combined like: Share capital and Share premium Liabilities classified under current and non-current elements Deferred tax and current tax Page 11 of 14 (kashifadeel.com)
12 ANSWER 7A $ Cash in hand 200,000 Cash at bank 140,000 Short term investments (1 month) in government 40,000 treasury bills Investment in prize bond 80,000 Bank overdraft (20,000) 440,000 ANSWER 7B There will be no particular effect on statement of cash flows because these are movements within the statement of cash flows. ANSWER 7C Identify the following transactions as operating, investing, financing or otherwise: TRANSACTION ANSWER 1. Cash received from customers Operating 2. Cash sales Operating 3. Cash proceeds from disposal of PPE Investing 4. Right issue of shares Financing 5. Repayment of loan Financing 6. Dividend received by stock market broker Operating 7. Dividend paid Financing 8. Salaries paid to employees Operating 9. Interest on debentures paid Financing 10. Interest received by a trading entity on some investment Investing 11. Interest received by a bank on loans advanced Operating 12. Taxes paid Operating 13. Purchase of a patent and software Investing 14. Advance paid to supplier Operating 15. Depreciation Non-cash 16. Bonus issue of shares Non-cash 17. Impairment loss on a plant Non-cash Page 12 of 14 (kashifadeel.com)
13 ANSWER 7D Part (a) Oxygen Limited Statement of cash flows For the year ended June 30, 2012 Cash flows from operating activities $ Profit before tax 89,000 Adjustments: Depreciation 12,000 Finance costs 21,000 Operating capital before working capital changes 122,000 Increase in inventory (230, ,000) (45,000) Decrease in prepayments (14,000 16,000) 2,000 Increase in trade receivables (52,000 30,000) (22,000) Increase in trade payables (39,000 44,000) (5,000) Cash generated from operations 52,000 Interest paid (21,000) Income tax paid (b/f 4,000 + PL 30,000 c/f 5,000) (29,000) Net cash from operating activities 2,000 Part (b) Oxygen Limited Statement of cash flows For the year ended June 30, 2012 Cash flows from operating activities $ Cash received from customers (500,000 revenue 22,000 increase in 478,000 receivables) Cash paid to suppliers and employees (W1) (426,000) Cash generated from operations 52,000 Interest paid (21,000) Income tax paid (b/f 4,000 + PL 30,000 c/f 5,000) (29,000) Net cash from operating activities 2,000 W1 $ Cost of sales (310,000) Operating expenses (80,000) Finance costs (21,000) (411,000) Adjustments: Depreciation 12,000 Finance costs 21,000 Operating capital before working capital changes (378,000) Increase in inventory (230, ,000) (45,000) Decrease in prepayments (14,000 16,000) 2,000 Increase in trade payables (39,000 44,000) (5,000) Cash paid to suppliers and employees (426,000) Page 13 of 14 (kashifadeel.com)
14 ANSWER 7E Nitrogen Limited Statement of cash flows For the year ended June 30, 2012 Cash flows from investing activities $ Cash paid to acquire PPE (b/f 800, ,000 dep. c/f 850,000) (250,000) Sale proceeds of intangible assets 200,000 Net cash used in investing activities (50,000) Cash flows from financing activities Issue of shares (b/f 500, ,000 c/f 600, ,000) 250,000 Long term loan obtained 500,000 Redemption of debentures (100, ,000) (300,000) Net cash from financing activities 450,000 ANSWER 7F The repayment of running finance of $ 3,000 (i.e. 47,000 44,000) should be presented in financing activities. Dated: 13 August 2016 Page 14 of 14 (kashifadeel.com)
6 The following terms are used in this Standard with the meanings specified: Cash comprises cash on hand and demand deposits.
International Accounting Standard 7 Statement of Cash Flows 1 Objective Information about the cash flows of an entity is useful in providing users of financial statements with a basis to assess the ability
More informationIndian Accounting Standard (Ind AS) 7 Statement of Cash Flows
Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate
More informationStatement of Cash Flows
IAS Standard 7 Statement of Cash Flows In April 2001 the International Accounting Standards Board adopted IAS 7 Cash Flow Statements, which had originally been issued by the International Accounting Standards
More informationStatement of Cash Flows
Sri Lanka Accounting Standard - LKAS 7 Statement of Cash Flows LKAS 7 CONTENTS SRI LANKA ACCOUNTING STANDARD - LKAS 7 STATEMENT OF CASH FLOWS OBJECTIVE paragraphs SCOPE 1 BENEFITS OF CASH FLOW INFORMATION
More informationStatement of Cash Flows
International Accounting Standard 7 Statement of Cash Flows This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 7 Cash Flow Statements was issued by the International
More informationSLAS 9. Sri Lanka Accounting Standard 9. Cash Flow Statements
Sri Lanka Accounting Standard 9 Cash Flow Statements 107 Contents Sri Lanka Accounting Standard 9 Cash Flow Statements Objective Scope Paragraphs 1-2 Benefits of Cash Flow Information 3-4 Definitions 5
More information2. This Standard supersedes IAS 7 Statement of Changes in Financial Position, approved in July 1977.
COMPARISON OF GRAP 2 WITH IAS 7 GRAP 2 IAS 7 DIFFERENCES Objective Objective.01 The cash flow statement identifies the sources of cash inflows, the items on which cash was expended during the reporting
More informationExposure Draft. Accounting Standard (AS) 7. Statement of Cash Flows
Exposure Draft Accounting Standard (AS) 7 Statement of Cash Flows Last date for the comments: January 21, 2016 Issued by Accounting Standards Board The Institute of Chartered Accountants of India 1 Exposure
More informationStatement of Cash Flows
CA BUSINESS SCHOOL EXECUTIVE DIPLOMA IN BUSINESS AND ACCOUNTING STRATEGY SEMESTER 1 LKAS 07 Statement of Cash Flows M B G Wimalarathna (FCA, FCMA, MCIM, FMAAT, MCPM)(MBA PIM/USJ) Objective Information
More informationBENEFITS OF CASH FLOW INFORMATION
16 Accounting Standard (AS) 3 Cash Flow Statements Contents OBJECTIVE SCOPE Paragraphs 1-2 BENEFITS OF CASH FLOW INFORMATION 3-4 DEFINITIONS 5-7 Cash and Cash Equivalents 6-7 PRESENTATION OF A CASH FLOW
More informationStatement of Cash Flows
HKAS 7 Revised June 2016August 2017 Hong Kong Accounting Standard 7 Statement of Cash Flows HKAS 7 COPYRIGHT Copyright 2017 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial
More informationTiill now you have learnt about the financial
Cash Flow Statement 6 LEARNING OBJECTIVES After studying this chapter, you will be able to : state the purpose and preparation of statement of cash flow statement; distinguish between operating activities,
More informationInd AS 7 Statement of Cash Flows. EIRC, Kolkata. Mohit Jain 16 February For discussion purposes only
Ind AS 7 Statement of Cash Flows EIRC, Kolkata Mohit Jain 16 February 2018 For discussion purposes only Overview of Ind AS 7 Requires presentation of a statement of cash flows as an integral part of financial
More informationFinancial statements. Chapter One-A. A- Statements of cash flows. 1 IAS 7 Statement of cash flows F5(a)-(h)
Chapter One-A Financial statements A- Statements of cash flows Topic list Syllabus reference 1 IAS 7 Statement of cash flows F5(a)-(h) 2 Preparing a statement of cash flows F5(g) Introduction In the long
More informationIAS 7 : STATEMENT OF CASH FLOWS COMPILED BY: MR. YAGNESH DESAI.
IAS 7 : STATEMENT OF CASH FLOWS CASH FLOWS : TERMINOLOGY Inflows and outflows of cash and cash equivalents. CASH : Comprises cash on hand and demand deposits. CASH EQUIVALENTS : Short-term, highly liquid
More informationReference. PwC Holdings Ltd and Its Subsidiaries Consolidated Income Statement for the financial year ended 31 December 2003
Consolidated Income Statement (Alternative 1: Illustrating the classification of expenses by function) 2 The Group FRS 1(77,82) SGX 1207(5)(a) Sales Cost of sales Gross profit 5,15 (24,512) 28,80 42,5
More informationUNIT 2 PRIMARY FINANCIAL STATEMENTS IAS 1,7,8,14,18 & IFRS5:
UNIT 2 PRIMARY FINANCIAL STATEMENTS IAS 1,7,8,14,18 & IFRS5: 1 IAS 1 PRESENTATION OF FINANCIAL STATEMENTS OVERVIEW IAS 1 Presentation of Financial Statements sets out the overall requirements for financial
More informationNew Zealand Equivalent to International Accounting Standard 7 Statement of Cash Flows (NZ IAS 7)
New Zealand Equivalent to International Accounting Standard 7 Statement of Cash Flows (NZ IAS 7) Issued November 2004 and incorporates amendments up to and including 31 December 2012 This Standard was
More informationAAT FINANCIAL STATEMENTS COURSE BOOK AND QUESTION BANK SUPPLEMENTS
AAT FINANCIAL STATEMENTS COURSE BOOK AND QUESTION BANK SUPPLEMENTS Some late amendments were incorporated into Chapter 5 Statement of Cash Flows and Chapter 9 Consolidated Statement of Financial Position.
More informationQPA. Introduction HKICPA QPA Financial Reporting Jun % 60% 55% 50% QPA 45% 40% Dec Jul Sep Nov Oct-2005.
Introduction HKICPA QPA Financial Reporting Jun 2012 Exam No. Exam A Financial Reporting 1,257 61% May-2005 A Financial Reporting 1,342 57% Feb-2006 A Financial Reporting 2,041 52% Sep-2006 A Financial
More informationCash flow from financing activities. Cash flow from investing activities; Cash flow from operating activities;
COMPONENTS OF CASH FLOW STATEMENT The cash flow statement should report cash flows during the period classified by operating, investing and financing activities. Cash flow statement explains the reasons
More informationGroup statements of cash flows
Group statements of cash flows Topic list Syllabus reference 1 Cash flows D1 2 IAS 7 Statement of cash flows: Single company D1 3 Consolidated statements of cash flows D1 Introduction A statement of cash
More informationPUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 2 CASH FLOW STATEMENTS (PBE IPSAS 2)
PUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 2 (PBE IPSAS 2) Issued September 2014 and incorporates amendments to 31 January 2017 other than consequential amendments resulting
More informationIAS Primary Financial Statements (PFS), Financial Reporting for Commercial and Industrial Enterprises,
1 iascf-pfs Primary Financial Statements (abstract) (iascf-pfs:iascf.pfs) IAS 1 2 0 iascf-pfs Balance Sheet (abstract) (iascf-pfs:bst) IAS 1 53; IAS 1 7 a 3 0 debit Monetary iascf-pfs Assets (iascf-pfs:ast)
More informationConsolidated Cash Flow Statement for the year ended 30th June, 2002
Consolidated Cash Flow Statement for the year ended 30th June, 2002 Notes Net cash inflow from operating activities (a) 4,916,217 6,797,641 Returns on investments and servicing of finance Interest received
More informationNew Zealand Equivalent to International Accounting Standard 7 Statement of Cash Flows (NZ IAS 7)
New Zealand Equivalent to International Accounting Standard 7 Statement of Cash Flows (NZ IAS 7) Issued November 2004 and incorporates amendments to 31 December 2016 other than consequential amendments
More informationUniversity of Economics, Prague. Statement of Cash Flows (IAS 7)
University of Economics, Prague Faculty of Finance and Accounting Department of Financial Accounting and Auditing Statement of Cash Flows (IAS 7) 1FU496 Intermediate Accounting (MiFA course) David Procházka
More informationCash Flow Statements. Chapter 15. Luby & O Donoghue (2005)
Cash Flow Statements Chapter 15 Luby & O Donoghue (2005) Cash is king profits can be manufactured by creative accounting but creating cash is impossible. Terry Smith, Accounting for Growth Typical cash
More informationUniversity of Economics, Prague
University of Economics, Prague Faculty of Finance and Accounting Department of Financial Accounting and Auditing Lesson 2: Examples and Case studies Lecturer: David Procházka Contact: Email: prochazd@vse.cz
More informationModule 7 Statement of Cash Flows
IFRS for SMEs Standard (2015) + Q&As IFRS Foundation Supporting Material for the IFRS for SMEs Standard Module 7 Statement of Cash Flows IFRS Foundation Supporting Material for the IFRS for SMEs Standard
More informationIAS 7: Statement of Cash Flows
IAS 7: Statement of Cash Flows The Statement of Cash Flows is one of the primary statements that comprise a complete set of IFRS-compliant financial statements, as required by IAS 1: Presentation of Financial
More informationStatement of Cash Flows
Statement of Cash Flows Statement of cash flows General Principles Mandatory for most of the entities Direct and Indirect method Generally starts with PAT (Profit after tax) 2 Overview of AS 3 Requires
More informationFinancial Statement Balance Sheet
Financial Statement Balance Sheet Provided by: GREATEK ELECTRONTCS INC. Accounting Title 2016/6/30 2015/12/31 2015/6/30 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash
More informationSTATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS OBJECTIVES After studying this chapter you should be able to: l identify the need for a statement of cash flows l describe the difference between funds flow and cash flow l 23
More informationHALLENSTEIN GLASSON HOLDINGS LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months 1 February 2018 (unaudited) Half Year Half Year 1/2/18 1/2/17 $000 $000 Sales revenue 146,757 122,911 Cost of sales (56,551) (51,555) Gross
More informationSpecial purpose financial statements
Special purpose financial statements Illustrative guide to the disclosure requirements of: AASB 101 Presentation of Financial Statements AASB 107 Statement of Cash Flows AASB 108 Accounting Policies, Changes
More informationStatement of Financial Accounting Standards No. 17. Statements of Financial Accounting Standards No.17. Statement of Cash Flows
Statement of Financial Accounting Standards No. 17 Statements of Financial Accounting Standards No.17 Statement of Cash Flows Revised on 22 September 2005 Translated by TsingZai Wu, Associate Professor
More informationReview of the application of IAS 7 Statement of Cash Flows by selected Irish equity issuers
Review of the application of IAS 7 Statement of Cash Flows by selected Irish equity issuers October 2014 MISSION STATEMENT Our mission is to promote high quality financial reporting and effective regulation
More informationKCE Electronics Public Company Limited and its subsidiaries
Statements of financial position Consolidated Separate financial financial 31 December 31 December Assets Note 2012 2011 2012 2011 Current assets Cash and cash equivalents 7 397,177,878 535,535,464 94,974,827
More informationTHE MINISTRY OF FINANCE Pursuant to Article 15 paragraph 4 of the Accounting Act (Official Gazette 109/07), the Minister of Finance hereby issues the
THE MINISTRY OF FINANCE Pursuant to Article 15 paragraph 4 of the Accounting Act (Official Gazette 109/07), the Minister of Finance hereby issues the 1/9 ORDINANCE ON THE LAYOUT AND THE CONTENTS OF THE
More informationIAS 7 Statement of Cashflow
IAS 7 Statement of Cashflow Why do we need to prepare a cashflow statement? The fundamental purpose of being in business is to generate a profit. However, profitability is arguably a long-term objective.
More informationFinancial Statements of Companies
2 Financial Statements of Companies BASIC CONCEPTS UNIT 1: PREPARATION OF FINANCIAL STATEMENTS While preparing the final accounts of a company the following should be kept in mind: Requirements of Schedule
More informationUnappropriated retained earnings (accumulated deficit) Total unappropriated retained earnings (accumulated deficit) 676, ,797 Total retained ear
Financial Statement Balance Sheet Accounting Title 2014/12/31 2013/12/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents 1,183,185 1,177,682 Current bond investment
More informationMANAGEMENT ACCOUNTING - CASH FLOW
MANAGEMENT ACCOUNTING - CASH FLOW http://www.tutorialspoint.com/accounting_basics/management_accounting_cash_flow.htm Copyright tutorialspoint.com It is very important for a business to keep adequate cash
More informationCPA Summary Notes. Statement of Cash Flow. Objective of IAS 7
CPA Summary Notes Statement of Cash Flow Objective of IAS 7 The objective of IAS 7 is to require the presentation of information about the historical changes in cash and cash equivalents of an entity by
More informationKCE Electronics Public Company Limited and its subsidiaries
Statements of financial position Consolidated financial Separate financial 31 December 31 December 31 December 31 December Assets Note 2014 2013 2014 2013 Current assets Cash and cash equivalents 7 463,016,990
More informationName of business Statement of cash flows for the financial year end 31 December 20X1 (DIRECT METHOD) Inflow /(outflow)
Name of business Statement of cash flows for the financial year end 31 December 201 (DIRECT METHOD) Calc Notes Inflow /(outflow) CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers C1 Cash
More informationAdvanced Financial Accounting and Reporting (AFAR)
SET A SEPTEMBER 2015 SUGGESTED SOLUTION QUESTION 1 a) Labian Bhd Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2015 000 Revenue (176,400 + 105,840)
More informationCast. The following information has been extracted from Cast s financial statements for the year ended 31 March 2015
Cast The following information has been extracted from Cast s financial statements for the year ended 31 Accounting policies (extract only) Vendor Agreements Some of our vendors provide us with cash payments
More informationF2 Financial Accounting
CPA Ireland Skillnet CPA Ireland Skillnet, is a training network that is funded by Skillnets, a state funded, enterprise led support body dedicated to the promotion and facilitation of training and upskilling
More informationINFORMA 2017 FINANCIAL STATEMENTS 1
INFORMA 2017 FINANCIAL STATEMENTS 1 GENERAL INFORMATION This document contains Informa s Consolidated Financial Statements for the year ending 31 December 2017. These are extracted from the Group s 2017
More information2016/2/25 Financial Statement Balance Sheet
2016/2/25 Financial Statement Balance Sheet Financial Statement Balance Sheet Accounting Title 2015/12/31 2014/12/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents
More informationSOLUTIONS TO END-OF-CHAPTER QUESTIONS CHAPTER 6
SOLUTIONS TO END-OF-CHAPTER QUESTIONS CHAPTER 6 DEVELOP YOUR UNDERSTANDING Question 6.1 Abi: statement of cash flows for the year ended 31 August 2018 using the direct method Cash flows from operating
More informationDirectors Report 3. Income Statements 4. Statements of Changes in Equity 5. Balance Sheets 6. Statements of Cash Flows 7-8
Rakon Limited Annual Report 2009 Table of Contents Directors Report 3 Income Statements 4 Statements of Changes in Equity 5 Balance Sheets 6 Statements of Cash Flows 7-8 Notes to Financial Statements
More informationSTRUCTURED CONNECTIVITY SOLUTIONS (PTY) LTD (Registration number 2002/001640/07) Historical FInancial Information for the year ended 31 August 2012
STRUCTURED CONNECTIVITY SOLUTIONS (PTY) LTD Historical FInancial Information for the year ended 31 August 2012 Index The reports and statements set out below comprise the historical financial information
More informationAccounting Title 2014/3/ /12/ /3/31 Balance Sheet
Financial Statement Balance Sheet Accounting Title 2014/3/31 2013/12/31 2013/3/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents 7,974,989 6,997,862 6,433,466
More informationKE 1 - FINANCIAL ACCOUNTING AND REPORTING FUNDAMENTALS Suggested Answers and Marking Grid
KE 1 - FINANCIAL ACCOUNTING AND REPORTING FUNDAMENTALS Suggested Answers and Marking Grid 1 SECTION 1 Question 01 1(a) 1.1. 1.2.6 Explain qualitative characteristics of financial statements/financial information.
More informationVASSETI (UK) PLC CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (All Amounts in Ringgit Malaysia) 6 Months ended 6 Months ended 30-Jun 30-Jun 2014
More informationChapter IV. Disclosure Requirements of IAS & AS
Chapter IV Disclosure Requirements of IAS & AS 34 For better understanding I have divided this chapter into two part first part compare International Accounting Standard with India Accounting Standard,
More informationCambridge IGCSE Accounting (0452)
www.xtremepapers.com Cambridge IGCSE Accounting (0452) International Accounting Standards (IAS) Guidance for Teachers Contents Introduction... 2 Use of this document... 2 Users of financial statements...
More informationIFRS Compliant CGIAR Reporting Guidelines
Approved by the System Management Board at its 8 th meeting, 11-12 December 2017 (Decision Ref SMB/M8/DP8) Contents 1. Introduction & forewords on International Financial Reporting Standards (IFRS)...
More informationPearson plc IFRS Technical Analysis
Pearson plc IFRS Technical Analysis Contents A. Introduction B. Basis of presentation C. Accounting Policies D. Critical Accounting Assumptions and Judgements Schedules 1. Income statement Reconciliation
More informationIAB Level 4 Certificate in International Accounting Standards and IFRS 603/3017/X. Qualification Specification
IAB Level 4 Certificate in International Accounting Standards and IFRS 603/3017/X Qualification Specification Contents 1 Introduction to the qualification... 2 2 Statement of level... 2 3 Aims... 2 4 Target
More informationAs at March 31, 2017 Balance Sheet as at March 31, 2018 Note No. Rs. Lakhs Rs. Lakhs Rs. Lakhs
As at March 31, 2018 As at March 31, 2017 Balance Sheet as at March 31, 2018 Note No. Rs. Lakhs Rs. Lakhs Rs. Lakhs Particulars ASSETS Non-current assets Property, plant and equipment 1.1 162.81 42.76
More information6.2 Need for Changes in Financial Position. 6.3 Statement of Changes in Financial Position--- Meaning
Analysis Overview of Financial Statements UNIT 6 STATEMENT OF CHANGES IN FINANCIAL POSITION Structure 6.0 Objectives 6.1 Introduction 6.2 Need for Changes in Financial Position 6.3 Statement of Changes
More informationStrategic Professional Essentials, SBR INT Strategic Business Reporting International (SBR INT)
Answers Strategic Professional Essentials, SBR INT Strategic Business Reporting International (SBR INT) December 2018 Answers 1 (a) Explanatory note to: The directors of Moyes Subject: Cash flows generated
More informationGETBACK SPÓŁKA AKCYJNA
GETBACK SPÓŁKA AKCYJNA SEPARATE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2015 ENDED ON 31.12.2015 DRAFTED IN ACCORDANCE WITH THE ACCOUNTING ACT OF 29 SEPTEMBER 1994 Wrocław, 26.02.2016 TABLE OF CONTENTS
More informationFinancial Statement Balance Sheet
Financial Statement Balance Sheet Accounting Title 2014/3/31 2013/12/31 2013/3/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents 4,556,450 4,372,738 3,960,180
More informationXiamen C&D Inc. Consolidated Balance Sheet As at 31 December 2014
Current Xiamen C&D Inc. Consolidated Balance Sheet As at 31 December 2014 1 December 31, 2014 January 1,2014 Monetary funds 6,643,012,173.68 6,648,193,063.17 Financial which are measured by fair value
More informationMODEL FINANCIAL STATEMENTS INTERNATIONAL GAAP HOLDINGS LIMITED
MODEL FINANCIAL STATEMENTS INTERNATIONAL GAAP HOLDINGS LIMITED MODEL FINANCIAL STATEMENTS INTERNATIONAL GAAP HOLDINGS LIMITED Financial Statements for the year ended 31 December 2001 The model financial
More informationPrimary Financial Statements (PFS), Financial Reporting for Commercial and Industrial Entities,
11/4/2002 6:32:13 AM 1 iascf-pfs Primary Financial Statements (abstract) (iascf-pfs:primaryfinancialstatements) IAS 1 7 2 0 iascf-pfs Balance Sheet (abstract) (iascf-pfs:balancesheet) IAS 1 7 a 3 0 debit
More informationWORKINGS DO NOT DOUBLE COUNT MARKS Working 1 Revenue $ 000 Alpha + Beta 390,000 ½ Intra-group sales to Beta (25,000)
Answers Diploma in International Financial Reporting December 0 Answers and Marking Scheme Marks Consolidated statement of comprehensive income of Alpha for the year ended 30 September 0 Revenue (W) 365,000
More informationCash and cash equivalents 8, 9 1,199,381,498 2,131,096, ,435,381 1,870,320,961
Statements of financial position As at 31 December 2011 and 2010 Note 2011 2010 2011 2010 Assets Current assets Cash and cash equivalents 8, 9 1,199,381,498 2,131,096,112 883,435,381 1,870,320,961 Trade
More informationFinancial Statements. - Directors Responsibility Statement. - Consolidated Statement of Comprehensive Income
X.0 HEADER Financial Statements - Directors Responsibility Statement - Consolidated Statement of Comprehensive Income - Consolidated Statement of Financial Position - Consolidated Statement of Changes
More informationFundamentals Level Skills Module, Paper F7 (IRL) 1 Consolidated balance sheet of Pacemaker as at 31 March 2009: million
Answers Fundamentals Level Skills Module, Paper F7 (IRL) Financial Reporting (Irish) June 2009 Answers 1 Consolidated balance sheet of Pacemaker as at 31 March 2009: million million Fixed assets Intangible
More informationIFRS illustrative consolidated financial statements
IFRS illustrative consolidated financial statements 2016 This publication has been prepared for illustrative purposes only and does not constitute accounting or other professional advice, nor is it a substitute
More informationSOLUTION ADVANCED FINANCIAL REPORTING NOV 2010
SOLUTION ADVANCED FINANCIAL REPORTING NOV 2010 SOLUTION 1 FOFIE GROUP OF COMPANIES COSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2009 Net profit before tax Adjustment for: Depreciation
More informationMIAQE AFAR SEPTEMBER 2016 SUGGESTED SOLUTION QUESTION 1
MIAQE AFAR SEPTEMBER 2016 SUGGESTED SOLUTION QUESTION 1 Goodwill NCI GRP RMmill RMmill RMmill RMmill Bazaar Bhd CT (20%) 1,050 +) FV of previous holding (40%) 1,800 +) NCI (40% x 4,490) 1,796 1,796 4,646
More informationFinancial Statement Balance Sheet
Financial Statement Balance Sheet Page 1 of 1 Financial Statement Balance Sheet Accounting Title 2014/09/30 2013/12/31 2013/09/30 Balance Sheet Assets Current assets Cash and cash equivalents Total cash
More informationANNEX I GENERAL. 2nd 2017 HALF-YEARLY FINANCIAL REPORT FOR FINANCIAL YEAR REPORTING DATE 12/31/ /07/2018 I. IDENTIFICATION DATA
ANNEX I GENERAL 2nd 2017 HALF-YEARLY FINANCIAL REPORT FOR FINANCIAL YEAR REPORTING DATE PUBLICATION DATE 02/07/2018 I. IDENTIFICATION DATA Registered Company Name: ABERTIS INFRAESTRUCTURAS, S.A Registered
More informationInterim Financial Statements
Interim Financial Statements KCA Deutag Alpha Limited For the six months ended 30 June 2017 Page 1 of 11 Table of contents Consolidated income statement 3 Consolidated statement of changes in shareholder's
More informationThe accompanying notes on page 13 to 77 are an integral part of these consolidated and company financial statements.
Statement of Financial Position As at 31 December 2014 Assets 31 December 31 December 1 January 31 December 31 December 1 January 2014 2013 2013 2014 2013 2013 Notes Baht Baht Baht Baht Baht Baht Current
More informationIntroduction Consolidated statement of comprehensive income for the year ended 31 December 20XX... 6
PKF International Limited administers a network of legally independent member firms which carry on separate businesses under the PKF Name. PKF International Limited is not responsible for the acts or omissions
More informationGedeon Richter CONSOLIDATED FINANCIAL STATEMENTS 2015
Gedeon Richter CONSOLIDATED FINANCIAL STATEMENTS Consolidated Financial Statements I Gedeon Richter Table of Contents Consolidated Income Statement 6 Consolidated Statement of Comprehensive Income 6 Consolidated
More informationCurrent assets CHIPBOND TECHNOLOGY CORPORATION PARENT COMPANY ONLY BALANCE SHEETS (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) December 31, 2017 December 31, 2016 Assets Notes AMOUNT % AMOUNT % 1100
More informationSchedule 54: Consolidated Statement of Cash Flows
Schedule 54: Consolidated Statement of Cash Flows The consolidated statement of cash flows reflects the effects of a municipality s activities on its cash resources. The statement of cash flows shows how
More informationTopic 1: The International Accounting Environment and Financial Reporting
Topic 1: The International Accounting Environment and Financial Reporting USERS OF FINANCIAL STATEMENTS - Internal Users involves Management Accounting communicating to those within entity looking for
More informationSTATEMENT OF CASH FLOWS
Chapter 16 STATEMENT OF CASH FLOWS PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Winston Kwok, Ph.D.,
More informationIOLKOS DEVELOPMENT ENTERTAINMENT S.A. 85 MESOGEION AVE., Athens, Greece General Commerce Reg. No SA Reg. No.
85 MESOGEION AVE., 11526 Athens, Greece General Commerce Reg. No. 59231 SA Reg. No. 57343/1/Β/4/47 TRANSLATED ABSTRACT OF ANNUAL FINANCIAL STATEMENTS 1 ST JANUARY TO 31 ST DECEMBER 217 STATEMENT OF FINANCIAL
More informationLESSON 7. Cash Flow Statement
LESSON 7 Cash Flow Statement 1 Outline 7.1. Introduction: definition and purpose. 7.2. Format of the Cash Flow Statement. 7.3. Definition of cash and cash equivalents. 7.4. Cash flows from operating activities.
More informationREVISED OUTLINE GUIDANCE NOTES
REVISED OUTLINE GUIDANCE NOTES regarding adoption of Schedule VI to the Companies Act 1956 in the subject of ACCOUNTANCY Class XII For the Board Examination, March 2014 1 CONTENT Chapter 1: GENERAL INTRODUCTION
More informationWEEK 6- FINANCIAL STATEMENT OF A CORPORATE ORGANISATION & LEASE
CIS FINANCIAL ACCOUNTIG 1.1 CONTACT NUMBER 08038400843 CONTACT HOURS TUESDAYS AND FRIDAY 6PM 7PM. QUESTION WEEK 6- FINANCIAL STATEMENT OF A CORPORATE ORGANISATION & LEASE CHAPTER 10 & 13. MULTIPLE CHOICE
More informationInterim Financial Statements
Interim Financial Statements KCA Deutag Alpha Limited For the three months ended 31 March 2018. Page 1 of 11 Table of contents Consolidated income statement 3 Consolidated statement of changes in shareholder's
More informationSchedule 54: Consolidated Statement of Cash Flows
Schedule 54: Consolidated Statement of Cash Flows The consolidated statement of cash flows reflects the effects of a municipality s activities on its cash resources. The statement of cash flows shows how
More informationAccounting Title 2015/12/ /12/31 Balance Sheet
Financial Statement Balance Sheet Provided by: MECHEMA CHEMICALS INT CORP. Finacial year: Yearly Accounting Title 2015/12/31 2014/12/31 Balance Sheet Assets Current assets Cash and cash equivalents Total
More information14. Statement of cash flows
14. Statement of cash flows Accounting and reporting by charities EPOSURE DRAFT Introduction 14.1. Charities preparing their accounts under FRS 102 must provide a statement of cash flows and should refer
More informationMarel Food Systems hf. Consolidated Financial Statements for the year 2009
Marel Food Systems hf. Consolidated Financial Statements for the year 2009 Index Pages Consolidated Statement of Comprehensive Income... 1 Consolidated Statement of Financial Position... 2 Consolidated
More information(Continued) ~3~ March 31, 2017 December 31, 2016 March 31, 2016 Assets Notes AMOUNT % AMOUNT % AMOUNT % Current assets
Current assets DAVICOM SEMICONDUCTOR, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in thousands of New Taiwan dollars) (The consolidated balance sheets as of March 31,2017 and 2016 are
More informationCurrent assets Inventory (6, , URP (w (iv))) 12,800 Trade receivables (3, ,500) 4,700. Total assets 69,000
Answers Fundamentals Level Skills Module, F7 (SGP) Financial Reporting (Singapore) December 2007 Answers 1 (a) Consolidated balance sheet of Plateau as at 30 September 2007 $ 000 $ 000 Assets Non-current
More informationRakon Limited. Results for announcement to the market
Rakon Limited Results for announcement to the market Reporting period 12 months to 31 st March 2014 Previous reporting period 12 months to 31 st March 2013 Unaudited Amount NZ$000 % Change Revenue from
More information