The document provides guidance on preparing cash flow statements according to accounting standards for business enterprises. It defines key terms like cash and cash flows, and classifies cash flows into three categories: operating, investing and financing activities. It describes the principal cash inflows and outflows that should be included in each category and how to prepare the cash flow statement.
This document outlines Accounting Standard 3 regarding cash flow statements. It defines key terms like cash flows, operating activities, investing activities and financing activities. It provides guidance on presenting and preparing the cash flow statement, including reporting cash flows from different activities and the treatment of items like foreign currency, extraordinary items, and non-cash transactions. The standard aims to provide useful information about an entity's historical cash flows to assess its ability to generate cash flows.
The document provides an overview of International Accounting Standard 7 on the statement of cash flows. It discusses the scope, objectives, definitions, presentation requirements, and reporting requirements for the statement of cash flows including the classification of cash flows as operating, investing and financing activities. It also covers topics like foreign currency cash flows, interest and taxes, subsidiaries, non-cash items, and the components of cash and cash equivalents that must be disclosed.
The document discusses a cash flow statement presented by three students. It defines a cash flow statement as a summary of a firm's cash receipts and payments during a period of time. It explains that cash flows come from operating, investing and financing activities. Operating activities include cash from sales and cash paid for expenses. The document outlines the importance, uses and users of the cash flow statement.
This document provides definitions and guidance on preparing a statement of cash flows according to IAS 7. It defines key terms like cash and cash equivalents. It explains how to classify cash flows from operating, investing and financing activities and provides examples of cash flows that would fall under each classification. It also discusses the direct and indirect methods for preparing the statement of cash flows and how foreign currency, interest, dividends and taxes should be reported.
IAS 7 requires entities to prepare a statement of cash flows that classifies cash flows during the period into operating, investing, and financing activities. It aims to provide information about historical changes in cash and cash equivalents of an entity. Cash comprises cash on hand and demand deposits, while cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. The statement of cash flows excludes cash flows between items that constitute cash and cash equivalents. It can be prepared using either the direct or indirect method.
IAS 7 provides guidance on cash flow statements. It requires entities to present a statement of cash flows which classifies cash flows during a period into operating, investing and financing activities. It aims to provide information about the ability of an entity to generate cash, its needs to utilize cash, and the timing and certainty of cash flows. The standard describes the content of the statement of cash flows, including requirements for presentation and disclosures.
This document provides an overview of IAS 7 requirements for cash flow statements. It defines key terms like cash and cash equivalents and outlines the classification of cash flows into operating, investing and financing activities. It also covers the direct and indirect methods for preparing the statement of cash flows and disclosure requirements.
This document provides an overview of IAS-7 Statement of Cash Flows and how it compares to the corresponding Indian accounting standard AS-3. It discusses the key requirements of IAS-7 including the objectives, definitions of cash and cash equivalents, and classification of cash flows. It also highlights some of the differences between IAS-7 and AS-3, such as exemptions for small and medium enterprises under AS-3.
This document outlines Accounting Standard 3 regarding cash flow statements. It defines key terms like cash flows, operating activities, investing activities and financing activities. It provides guidance on presenting and preparing the cash flow statement, including reporting cash flows from different activities and the treatment of items like foreign currency, extraordinary items, and non-cash transactions. The standard aims to provide useful information about an entity's historical cash flows to assess its ability to generate cash flows.
The document provides an overview of International Accounting Standard 7 on the statement of cash flows. It discusses the scope, objectives, definitions, presentation requirements, and reporting requirements for the statement of cash flows including the classification of cash flows as operating, investing and financing activities. It also covers topics like foreign currency cash flows, interest and taxes, subsidiaries, non-cash items, and the components of cash and cash equivalents that must be disclosed.
The document discusses a cash flow statement presented by three students. It defines a cash flow statement as a summary of a firm's cash receipts and payments during a period of time. It explains that cash flows come from operating, investing and financing activities. Operating activities include cash from sales and cash paid for expenses. The document outlines the importance, uses and users of the cash flow statement.
This document provides definitions and guidance on preparing a statement of cash flows according to IAS 7. It defines key terms like cash and cash equivalents. It explains how to classify cash flows from operating, investing and financing activities and provides examples of cash flows that would fall under each classification. It also discusses the direct and indirect methods for preparing the statement of cash flows and how foreign currency, interest, dividends and taxes should be reported.
IAS 7 requires entities to prepare a statement of cash flows that classifies cash flows during the period into operating, investing, and financing activities. It aims to provide information about historical changes in cash and cash equivalents of an entity. Cash comprises cash on hand and demand deposits, while cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. The statement of cash flows excludes cash flows between items that constitute cash and cash equivalents. It can be prepared using either the direct or indirect method.
IAS 7 provides guidance on cash flow statements. It requires entities to present a statement of cash flows which classifies cash flows during a period into operating, investing and financing activities. It aims to provide information about the ability of an entity to generate cash, its needs to utilize cash, and the timing and certainty of cash flows. The standard describes the content of the statement of cash flows, including requirements for presentation and disclosures.
This document provides an overview of IAS 7 requirements for cash flow statements. It defines key terms like cash and cash equivalents and outlines the classification of cash flows into operating, investing and financing activities. It also covers the direct and indirect methods for preparing the statement of cash flows and disclosure requirements.
This document provides an overview of IAS-7 Statement of Cash Flows and how it compares to the corresponding Indian accounting standard AS-3. It discusses the key requirements of IAS-7 including the objectives, definitions of cash and cash equivalents, and classification of cash flows. It also highlights some of the differences between IAS-7 and AS-3, such as exemptions for small and medium enterprises under AS-3.
The document provides an overview of IAS 7 Statement of Cash Flows. It discusses:
1) The objective of the statement of cash flows is to provide information about a company's cash receipts and cash payments.
2) Cash flows are classified into operating, investing and financing activities.
3) The statement of cash flows can be prepared using either the direct or indirect method, with the direct method being encouraged for operating cash flows.
This document summarizes IAS-7 Cash Flow Statements. The standard requires entities to prepare a statement of cash flows that classifies cash flows during a period into operating, investing, and financing activities. It defines key terms and outlines how to present and report cash flows from these three activities, including using the direct or indirect method. Cash flows from interest, dividends, taxes, and acquisitions/disposals must be separately classified and disclosed.
The document discusses accounting standard IAS 7 and preparation of cash flow statements. It provides an overview of cash flow statements, their objectives, and classification of cash flows into operating, investing and financing activities. Key points covered include:
- Cash flow statements present the inflows and outflows of cash and are separated into operating, investing and financing activities.
- The statements are prepared according to IAS 7 to provide information on historical changes in cash and cash equivalents.
- Cash flows are useful for evaluating changes in assets/liabilities, comparability between companies, and assessing future cash flow amounts and timing.
- Operating activities include cash from sales and payments, investing activities involve plant/equipment purchases and
This chapter discusses financial difficulties faced by companies and alternatives available to address them. It covers reasons for financial difficulties, alternative courses of action like debt restructuring and bankruptcy, and different types of bankruptcy proceedings. Under Chapter 11 reorganization, a company receives protection from creditors to restructure its debts and operations while continuing as a business. In Chapter 7 liquidation, a trustee sells the company's assets and uses proceeds to pay creditors, resulting in the business ceasing operations. The chapter provides accounting guidance for companies in financial difficulty or bankruptcy proceedings.
Illustrative socpa financial statements template limited liability co englishaslamgheewala
The document contains illustrative financial statements for XYZ Company for the year ended December 31, 2008, including an independent auditors' report, balance sheet, statement of income, and statement of cash flows. The independent auditors' report expresses an unqualified opinion and states that the financial statements fairly present the financial position and results of operations of XYZ Company in accordance with accounting standards in Saudi Arabia.
The document provides guidance on applying IAS 7 Statement of Cash Flows and avoiding common pitfalls. It discusses key requirements such as defining cash and cash equivalents, classifying cash flows as operating, investing or financing, and presentation issues. The guidance also addresses application issues like treatment of restricted cash, non-cash transactions, and cash flows of groups and foreign currencies. The overall aim is to help ensure high quality, consistent application of IAS 7.
Preparation of cash flow statement as per indianVikas Kumar
The document discusses the preparation of a cash flow statement according to Indian accounting standards. It defines a cash flow statement as a statement that shows the flow of cash and cash equivalents during a period. The cash flow statement categorizes cash flows into three sections - operating, investing, and financing activities. Operating activities involve principal revenue activities and other non-investing/financing activities. Investing activities include long-term asset acquisitions and disposals. Financing activities cause changes in owner's equity and borrowings. The document provides the format for a cash flow statement.
The document summarizes the key requirements of IAS 7 regarding cash flow statements. It states that all entities must present a cash flow statement classified into operating, investing and financing activities. It defines cash and cash equivalents and outlines the direct and indirect methods for preparing the cash flow statement.
This document defines key accounting terms and concepts. It discusses the definition of accounting, bookkeeping, accounting concepts, conventions, systems, principles, journals, ledgers, trial balances, income/expenditure types, reserves, companies and more. Key points covered include the definition of accounting as recording financial transactions and events in monetary terms, the difference between bookkeeping and accounting, concepts like separate entity and matching principle, and definitions of common accounting terms.
This standard provides guidance on accounting for and disclosing events that occur after the balance sheet date. It distinguishes between adjusting events and non-adjusting events. Adjusting events provide evidence of conditions that existed at the balance sheet date and require adjustment to amounts recognized in the financial statements. Non-adjusting events are indicative of conditions that arose after the balance sheet date and do not result in adjustment, but may require disclosure. The standard also specifies required disclosures regarding the date the financial statements were authorized for issue and material non-adjusting events.
1. The document defines key terms used in financial statements such as balance sheet, equity and liabilities, assets, statement of profit and loss.
2. It explains the components of equity and liabilities like share capital, reserves, borrowings, trade payables. It also explains the components of assets like fixed assets, investments, loans.
3. It provides the format of balance sheet as prescribed in the Companies Act with line items for equity and liabilities and assets along with the accounting treatment for various items.
Here are the calculations for the direct method cash flow statement items requested:
Cash collections from customers:
Net credit sales
+ Decrease in accounts receivable
= Cash collections from customers
5,000,000
1,000,000
6,000,000
Payments to suppliers:
Purchases (on account)
- Increase in trade payables
= Payments to suppliers
4,000,000
100,000
3,900,000
Cash paid for operating expenses:
Operating expenses
+ Decrease in accrued expenses
- Depreciation
= Cash paid for operating expenses
3,000,000
100,000
Cash flow statements show the inflows and outflows of cash over a period of time. They classify cash flows into three categories: operating, investing, and financing activities. Cash flow statements are prepared using either the direct or indirect method. They are useful for short-term financial planning, preparing cash budgets, comparing actual cash flows to budgets, and assessing a company's ability to generate cash.
This document provides an overview of the statement of cash flows, including:
- The statement of cash flows shows a company's ability to generate cash flows from operating, investing, and financing activities.
- It is the only financial statement prepared on a cash basis rather than accrual basis.
- The objective is to require information on historical changes in cash and cash equivalents, classifying cash flows into the three activities.
- Examples of cash flows from each type of activity are operating activities like cash from sales, investing activities like purchases of property, and financing activities like equity issuances.
AS vs IND AS (Old vs New Indian Accounting Standards)sandesh mundra
This presentation takes one through the differences between Indian GAAP (old) vs IND AS (based on IFRS). All major differences have been covered in addition to IFRS carve outs.
The document discusses the requirements for cash flow statements in India according to IAS-7 and AS-3. It states that in India, AS-3 currently covers the provisions of IAS-7, and the ICAI has issued an exposure draft of a revised AS-3 that aligns with IAS-7 and will be effective from April 1, 2011. It also provides details on the key requirements and differences between IAS-7 and the existing and revised versions of AS-3.
Debt Restructuring Poses Various Income Tax Challengesjmuraco
Debt restructuring poses various tax challenges and valuation considerations. If debt is restructured at a discount, the borrower must recognize cancellation of debt (COD) income for tax purposes. However, COD income may be excluded if the borrower is insolvent. Determining insolvency requires valuing the borrower's assets to compare to liabilities. COD income that is not excluded reduces tax attributes like net operating losses. The impact of debt restructuring on taxes depends on whether an exclusion applies and the resulting effect on tax attributes.
This document defines accounting and related terms. It provides definitions for bookkeeping, accounting concepts like the separate entity concept, accounting conventions, accounting systems, accounting principles, journal, ledger, trial balance, debit and credit notes, contra entries, and petty cash book. It also defines accounting terms like promissory note, cheque, bank reconciliation statement, capital and revenue expenditures, depreciation, and accrued and outstanding incomes.
This document provides an overview of key accounting concepts, systems, principles, and terminology. It defines accounting and bookkeeping, outlines important accounting concepts like the separate entity concept and periodic matching of costs and revenues. It also describes accounting conventions, different bookkeeping systems, principles of debit and credit, common accounting records like journals and ledgers, key transactions and accounts, and definitions for financial statements, expenses, assets, liabilities, and equity. Finally, it covers topics related to companies including types of companies, formation, share capital, debentures, cash profit, and deemed public limited companies.
The document discusses cash flow statements, including their meaning, objectives, importance and limitations. It explains that a cash flow statement shows inflows and outflows of cash from operating, investing and financing activities during a period. Operating activities relate to main revenue generation, investing activities relate to purchase/sale of long-term assets, and financing activities relate to changes in capital/borrowings. The document also provides examples and classifications of various cash inflows and outflows under each activity.
The document provides an overview of International Accounting Standard 7 on the statement of cash flows. It discusses the scope, objectives, definitions, presentation requirements, and reporting requirements for the statement of cash flows including the classification of cash flows as operating, investing and financing activities. It also covers topics like foreign currency cash flows, interest and taxes, subsidiaries, non-cash items, and the components of cash and cash equivalents that must be disclosed.
The document provides an overview of IAS 7 Statement of Cash Flows. It discusses:
1) The objective of the statement of cash flows is to provide information about a company's cash receipts and cash payments.
2) Cash flows are classified into operating, investing and financing activities.
3) The statement of cash flows can be prepared using either the direct or indirect method, with the direct method being encouraged for operating cash flows.
This document summarizes IAS-7 Cash Flow Statements. The standard requires entities to prepare a statement of cash flows that classifies cash flows during a period into operating, investing, and financing activities. It defines key terms and outlines how to present and report cash flows from these three activities, including using the direct or indirect method. Cash flows from interest, dividends, taxes, and acquisitions/disposals must be separately classified and disclosed.
The document discusses accounting standard IAS 7 and preparation of cash flow statements. It provides an overview of cash flow statements, their objectives, and classification of cash flows into operating, investing and financing activities. Key points covered include:
- Cash flow statements present the inflows and outflows of cash and are separated into operating, investing and financing activities.
- The statements are prepared according to IAS 7 to provide information on historical changes in cash and cash equivalents.
- Cash flows are useful for evaluating changes in assets/liabilities, comparability between companies, and assessing future cash flow amounts and timing.
- Operating activities include cash from sales and payments, investing activities involve plant/equipment purchases and
This chapter discusses financial difficulties faced by companies and alternatives available to address them. It covers reasons for financial difficulties, alternative courses of action like debt restructuring and bankruptcy, and different types of bankruptcy proceedings. Under Chapter 11 reorganization, a company receives protection from creditors to restructure its debts and operations while continuing as a business. In Chapter 7 liquidation, a trustee sells the company's assets and uses proceeds to pay creditors, resulting in the business ceasing operations. The chapter provides accounting guidance for companies in financial difficulty or bankruptcy proceedings.
Illustrative socpa financial statements template limited liability co englishaslamgheewala
The document contains illustrative financial statements for XYZ Company for the year ended December 31, 2008, including an independent auditors' report, balance sheet, statement of income, and statement of cash flows. The independent auditors' report expresses an unqualified opinion and states that the financial statements fairly present the financial position and results of operations of XYZ Company in accordance with accounting standards in Saudi Arabia.
The document provides guidance on applying IAS 7 Statement of Cash Flows and avoiding common pitfalls. It discusses key requirements such as defining cash and cash equivalents, classifying cash flows as operating, investing or financing, and presentation issues. The guidance also addresses application issues like treatment of restricted cash, non-cash transactions, and cash flows of groups and foreign currencies. The overall aim is to help ensure high quality, consistent application of IAS 7.
Preparation of cash flow statement as per indianVikas Kumar
The document discusses the preparation of a cash flow statement according to Indian accounting standards. It defines a cash flow statement as a statement that shows the flow of cash and cash equivalents during a period. The cash flow statement categorizes cash flows into three sections - operating, investing, and financing activities. Operating activities involve principal revenue activities and other non-investing/financing activities. Investing activities include long-term asset acquisitions and disposals. Financing activities cause changes in owner's equity and borrowings. The document provides the format for a cash flow statement.
The document summarizes the key requirements of IAS 7 regarding cash flow statements. It states that all entities must present a cash flow statement classified into operating, investing and financing activities. It defines cash and cash equivalents and outlines the direct and indirect methods for preparing the cash flow statement.
This document defines key accounting terms and concepts. It discusses the definition of accounting, bookkeeping, accounting concepts, conventions, systems, principles, journals, ledgers, trial balances, income/expenditure types, reserves, companies and more. Key points covered include the definition of accounting as recording financial transactions and events in monetary terms, the difference between bookkeeping and accounting, concepts like separate entity and matching principle, and definitions of common accounting terms.
This standard provides guidance on accounting for and disclosing events that occur after the balance sheet date. It distinguishes between adjusting events and non-adjusting events. Adjusting events provide evidence of conditions that existed at the balance sheet date and require adjustment to amounts recognized in the financial statements. Non-adjusting events are indicative of conditions that arose after the balance sheet date and do not result in adjustment, but may require disclosure. The standard also specifies required disclosures regarding the date the financial statements were authorized for issue and material non-adjusting events.
1. The document defines key terms used in financial statements such as balance sheet, equity and liabilities, assets, statement of profit and loss.
2. It explains the components of equity and liabilities like share capital, reserves, borrowings, trade payables. It also explains the components of assets like fixed assets, investments, loans.
3. It provides the format of balance sheet as prescribed in the Companies Act with line items for equity and liabilities and assets along with the accounting treatment for various items.
Here are the calculations for the direct method cash flow statement items requested:
Cash collections from customers:
Net credit sales
+ Decrease in accounts receivable
= Cash collections from customers
5,000,000
1,000,000
6,000,000
Payments to suppliers:
Purchases (on account)
- Increase in trade payables
= Payments to suppliers
4,000,000
100,000
3,900,000
Cash paid for operating expenses:
Operating expenses
+ Decrease in accrued expenses
- Depreciation
= Cash paid for operating expenses
3,000,000
100,000
Cash flow statements show the inflows and outflows of cash over a period of time. They classify cash flows into three categories: operating, investing, and financing activities. Cash flow statements are prepared using either the direct or indirect method. They are useful for short-term financial planning, preparing cash budgets, comparing actual cash flows to budgets, and assessing a company's ability to generate cash.
This document provides an overview of the statement of cash flows, including:
- The statement of cash flows shows a company's ability to generate cash flows from operating, investing, and financing activities.
- It is the only financial statement prepared on a cash basis rather than accrual basis.
- The objective is to require information on historical changes in cash and cash equivalents, classifying cash flows into the three activities.
- Examples of cash flows from each type of activity are operating activities like cash from sales, investing activities like purchases of property, and financing activities like equity issuances.
AS vs IND AS (Old vs New Indian Accounting Standards)sandesh mundra
This presentation takes one through the differences between Indian GAAP (old) vs IND AS (based on IFRS). All major differences have been covered in addition to IFRS carve outs.
The document discusses the requirements for cash flow statements in India according to IAS-7 and AS-3. It states that in India, AS-3 currently covers the provisions of IAS-7, and the ICAI has issued an exposure draft of a revised AS-3 that aligns with IAS-7 and will be effective from April 1, 2011. It also provides details on the key requirements and differences between IAS-7 and the existing and revised versions of AS-3.
Debt Restructuring Poses Various Income Tax Challengesjmuraco
Debt restructuring poses various tax challenges and valuation considerations. If debt is restructured at a discount, the borrower must recognize cancellation of debt (COD) income for tax purposes. However, COD income may be excluded if the borrower is insolvent. Determining insolvency requires valuing the borrower's assets to compare to liabilities. COD income that is not excluded reduces tax attributes like net operating losses. The impact of debt restructuring on taxes depends on whether an exclusion applies and the resulting effect on tax attributes.
This document defines accounting and related terms. It provides definitions for bookkeeping, accounting concepts like the separate entity concept, accounting conventions, accounting systems, accounting principles, journal, ledger, trial balance, debit and credit notes, contra entries, and petty cash book. It also defines accounting terms like promissory note, cheque, bank reconciliation statement, capital and revenue expenditures, depreciation, and accrued and outstanding incomes.
This document provides an overview of key accounting concepts, systems, principles, and terminology. It defines accounting and bookkeeping, outlines important accounting concepts like the separate entity concept and periodic matching of costs and revenues. It also describes accounting conventions, different bookkeeping systems, principles of debit and credit, common accounting records like journals and ledgers, key transactions and accounts, and definitions for financial statements, expenses, assets, liabilities, and equity. Finally, it covers topics related to companies including types of companies, formation, share capital, debentures, cash profit, and deemed public limited companies.
The document discusses cash flow statements, including their meaning, objectives, importance and limitations. It explains that a cash flow statement shows inflows and outflows of cash from operating, investing and financing activities during a period. Operating activities relate to main revenue generation, investing activities relate to purchase/sale of long-term assets, and financing activities relate to changes in capital/borrowings. The document also provides examples and classifications of various cash inflows and outflows under each activity.
The document provides an overview of International Accounting Standard 7 on the statement of cash flows. It discusses the scope, objectives, definitions, presentation requirements, and reporting requirements for the statement of cash flows including the classification of cash flows as operating, investing and financing activities. It also covers topics like foreign currency cash flows, interest and taxes, subsidiaries, non-cash items, and the components of cash and cash equivalents that must be disclosed.
This document outlines the requirements for preparing a statement of cash flows under Indian Accounting Standard 7. It discusses the objective to provide information on an entity's cash generation and usage. The standard requires classification of cash flows as operating, investing or financing activities. It provides definitions for key terms and guidance on treatment of items like foreign currency cash flows, interest and dividends, taxes and non-cash transactions.
The document discusses cash flow statements, including what they are, their purpose and importance, how they are classified and prepared, and an example. Specifically:
- A cash flow statement shows cash generated and used during a period, organized into operating, investing, and financing activities.
- It provides insights into a company's liquidity and solvency, helps analyze future cash flows, and reveals management priorities and the quality of earnings.
- Cash flow statements classify cash flows as operating, investing, or financing activities and are prepared using balance sheets, income statements, and additional data. They summarize changes in a company's cash position during a period.
The document discusses the cash flow statement, which shows changes in a business's financial position over time in terms of cash and cash equivalents. It must be prepared by all listed companies along with other financial statements. Cash flows refer to inflows and outflows of cash and near-cash items. A cash flow statement classifies these cash flows into three activities: operating, investing, and financing. Operating activities involve core business revenue and expenses. Investing activities involve acquisition and disposal of long-term assets. Financing activities involve changes to a business's capital structure and debt.
The document discusses cash flow statements, which show a company's cash inflows and outflows from operating, investing, and financing activities. Cash flow from operating activities includes cash from sales, services, and payments for supplies, employees, taxes. Investing activities involve cash from purchases/sales of property and equipment and other investments. Financing activities include cash from issuing/repaying debt and equity. The cash flow statement is important for understanding a company's liquidity and ability to meet obligations.
The document defines key terms related to a cash flow statement such as cash flows, cash equivalents, and the three categories of cash flows - operating, investing, and financing activities. It explains that the cash flow statement classifies cash inflows and outflows according to these three activities. The objectives are to determine the sources and uses of cash from each activity. The document also provides examples of cash inflows and outflows that would be included in each of the three activities.
The document discusses the cash flow statement, which is the third important financial statement that shows the inflows and outflows of cash and cash equivalents of a company over a period of time. It classifies cash flows into three categories: operating, investing, and financing activities. The cash flow statement provides useful information to assess a company's ability to generate cash flows and its financial position and liquidity. It helps users in evaluating the sources and uses of cash in a company.
1. The document outlines the three main categories of cash flows for a company: operating, investing, and financing activities.
2. Operating activities involve cash effects from revenues and expenses that determine net income. Investing activities involve acquiring/disposing long-term assets and lending/collecting loans. Financing activities involve obtaining/repaying cash from debt and equity transactions.
3. Significant non-cash activities like asset exchanges are reported separately from cash flows. The statement of cash flows generally includes operating, investing, financing activities and non-cash transactions.
The document discusses the statement of cash flows, including its meaning, classification, and advantages. A cash flow statement shows the inflows and outflows of cash from operating, investing, and financing activities over a period of time. Operating activities include cash from sales and payments for expenses. Investing activities involve the purchase and sale of long-term assets. Financing activities include equity contributions and repayment of debt. The cash flow statement is useful for planning, control, and short-term financial decision making by providing insight into a company's liquidity and cash generation.
This document discusses Indian Accounting Standard 3 on cash flow statements. It defines key terms like cash, cash equivalents, operating activities, investing activities and financing activities. It explains the direct and indirect methods of preparing cash flow statements and requirements around classification of cash flows from various transactions like tax, foreign exchange, dividends and interest. The standard aims to provide useful information on changes in cash balances to investors and other stakeholders.
1.1 How Is Cash Flow to Be MonitoredBeyond just looking at .docxpaynetawnya
1.1
How Is Cash Flow to Be Monitored?
Beyond just looking at cash on the balance sheet, how is one to assess a company's cash, cash flow, and cash flow prospects? For many years, the accounting profession only required presentation of the balance sheet, income statement, and a statement of retained earnings (or stockholders' equity). In the 1960s, following several prominent and seemingly sudden business failures due to poor cash flow, the profession determined to require a fourth financial statement reporting on funds flow. The specific content and format evolved. In the 1990s, the profession began to require the current format for a statement of cash flows. This statement has become a well-established component of required reporting for corporate entities. The objective of the statement is to provide information that is helpful in assessing the amounts, timing, and uncertainty of an organization's cash inflows and outflows. Accordingly, the statement of cash flows divides cash flow information into key categories related to operating activities, investing activities, and financing activities. The statement also provides information about other investing and financing activities that do not directly entail the generation or consumption of cash. Thus, the statement also provides a key source of insight about a company's overall investing and financing actions.
Operating Activities
In a sweeping generalization, think of the operating activities of a business as the routine transactions and events that enter into the determination of ongoing income. Thus, the operating activities section of the statement of cash flows is a bit like a cash basis income statement. But, as you will soon see from the following details, this generalization should be used as a frame of reference only. Specifically, cash inflows from operating activities consist of receipts from customers for providing goods and services, the cash amount of interest earnings, and cash dividends received. Cash outflows relate to payments for inventory purchases, salaries, wages, taxes, interest, and other such business expenses. However, another way to view "operating" cash flows is to include anything that is not an "investing" or "financing" cash flow. This means that any cash flows that do not clearly fall into the categories of investing activities or financing activities are regarded as related to operations. Because this view casts the operating activities section as a "default" grouping, it is also necessary to understand the specifics of each of the next two categories.
Investing Activities
Investing activities relate to acquiring and disposing of longer term investments in stocks and debt issued by others, as well as buying and selling items of property, plant, and equipment. Investing cash inflows result when a company receives the proceeds from selling the stock and debt of others (unless such investment was initially acquired for "trading" rather than longer term investme ...
The document provides information about cash flow statements, including:
1. Cash flow statements show the inflows and outflows of cash and cash equivalents over a period of time for operating, investing, and financing activities.
2. Operating activities include principal revenue-generating activities and other day-to-day activities. Investing activities involve the acquisition and disposal of long-term assets. Financing activities involve activities that alter ownership equity and borrowing.
3. Typical cash inflows for operating activities include cash sales and collections from customers. Typical cash outflows are payments to suppliers and employees. For investing, typical cash inflows are from asset sales and typical cash outflows are for asset purchases. For financing,
A cash flow statement summarizes the inflows and outflows of cash from operating, investing, and financing activities over a specific period of time. It reveals how cash was generated and where it came from and went to. The primary objective is to provide information on the changes in cash position between two balance sheet dates. Some limitations include that it does not reflect changes in working capital and can be influenced by management policies. A cash flow statement differs from a fund flow statement in that the latter considers changes in net working capital rather than just cash, and is more useful for long-term analysis.
This document discusses Indian Accounting Standard 7 (Revised 2016) on cash flow statements. It defines key terms like cash flows and cash equivalents. It explains the objective is to classify cash flows from operating, investing and financing activities to assess a firm's ability to generate cash flows. The direct and indirect methods for preparing the cash flow statement are described. Treatment of taxes, interest, dividends and extraordinary items are also covered. Differences between AS 3 and AS 7 are highlighted.
This document provides an introduction to cash flow statements, including:
1. It defines a cash flow statement as a statement that describes cash inflows and outflows over a period of time, and explains that cash flow statements classify cash flows into operating, investing and financing activities.
2. It discusses some key terms used in cash flow statements such as cash, cash equivalents, and cash flows.
3. It explains the uses and significance of cash flow statements, such as evaluating a firm's cash position, planning future cash needs, and explaining causes of poor cash position despite profits.
Cash flow statement shows the inflows and outflows of cash and cash equivalents over a period of time. It has three sections - operating, investing, and financing activities. The direct method shows the conversion of income statement items to cash flows directly, while the indirect method adjusts net income for non-cash items like depreciation. While it identifies cash generated from operations, cash flow statement is not equivalent to an income statement since dividend payments do not reflect liquidity and it excludes non-cash transactions. Fund flow statement analyzes changes in working capital and the sources and uses of funds, but lacks originality as it rearranges existing accounting data and only indicates past positions.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
1. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
INTRODUCTION
1. This Standard prescribes the method of preparation of a cash flow statement and the
information that should be provided in a cash flow statement.
2. The objective of a cash flow statement is to provide users of accounting statements with
information about the inflows and outflows of cash and cash equivalents of an enterprise in an
accounting period, in order to enable users of accounting statements to understand and
evaluate the ability of the enterprise to generate cash and cash equivalents and, accordingly,
to forecast the future cash flows of the enterprise.
DEFINITIONS
3. The following terms are used in this Standard with the meanings specified:
(1) Cash is cash on hand and deposits that are readily available for payment.
(2) Cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value. (Hereinafter, the term “cash” will be used to cover both “cash”
and “cash equivalents” unless otherwise used together with "cash equivalents").
(3) Cash flows are inflows and outflows of cash and cash equivalents of an enterprise.
CLASSIFICATION OF CASH FLOWS
4. Cash flows should be classified into the following three categories:
(1) cash flows from operating activities;
(2) cash flows from investing activities; and
(3) cash flows from financing activities
CASH FLOWS FROM OPERATING ACTIVITIES
5. Operating activities are all transactions and events of the enterprise that are not investing or
financing activities.
6. The principal cash inflows from operating activities include:
(1) cash receipts from the sale of goods and the rendering of services;
(2) receipts of tax refunds; and
(3) cash receipts relating to other operating activities.
7. The principal cash outflows from operating activities include:
(1) cash payments for goods acquired and services received;
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2. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
(2) payments of all types of taxes; and
(3) cash payments relating to other operating activities .
CASH FLOWS FROM INVESTING ACTIVITIES
8. Investing activities are the acquisition and disposal of long-term assets and investments not
included in cash equivalents.
9. The principal cash inflows from investing activities include:
(1) cash receipts from return of investments;
(2) cash receipts from return on investments;
(3) net cash receipts from the sale of fixed assets, intangible assets and other long-term
assets; and
(4) cash receipts relating to other investing activities.
10. The principal cash outflows from investing activities include:
(1) cash payments to acquire fixed assets, intangible assets and other long-term assets;
(2) cash payments to acquire investments; and
(3) cash payments relating to other investing activities.
CASH FLOWS FROM FINANCING ACTIVITIES
11. Financing activities are those activities that result in changes in the size and composition of
the capital and borrowings of an enterprise.
12. The principal cash inflows from financing activities include:
(1) cash proceeds from investments by others;
(2) cash receipts from borrowings; and
(3) cash receipts relating to other financing activities.
13. The principal cash outflows from financing activities include:
(1) cash repayments of amounts borrowed;
(2) cash payments for distribution of dividends or profits, or cash payment of interest
expenses; and
(3) cash payments relating to other financing activities.
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3. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
ACQUISITION AND DISPOSAL OF SUBSIDIARIES OR OTHER BUSINESS UNITS
14. Cash flows arising from acquisitions and from disposals of subsidiaries or other business units
should be classified as investing activities and presented separately.
15. The aggregate amount of cash paid (or received) in connection with the acquisition (or
disposal) of a subsidiary or other business unit should be presented net of cash acquired (or
disposal of):
16. An enterprise should disclose in the notes to the accounting statements, in aggregate, in
respect of acquisitions or disposals of subsidiaries and other business units, the following
information:
(1) the purchase or disposal consideration;
(2) the portion of the purchase or disposal consideration discharged by means of cash;
(3) the amount of cash in the subsidiary or business unit acquired or disposed of; and
(4) the amount of the assets and liabilities other than cash in the subsidiary and other
business unit acquired or disposed of, summarised by each major category.
CASH FLOWS OF FINANCIAL INSTITUTIONS AND INSURANCE ENTERPRISES
17. The classification of cash flow items of financial institutions and insurance enterprises is
different from that of other industries. In the preparation of a cash flow statement, when the
classification of cash flow items as specified above is not applicable, items should be
appropriately classified in accordance with their nature and the particular circumstances.
18. The following cash receipts and payments of a financial institution should be classified as
cash flows from operating activities:
(1) loans made to outsiders and the repayment of the principal of such loans;
(2) the acceptance of deposits and the repayment of the principal of such deposits;
(3) deposits from or to other financial institutions;
(4) funds borrowed from or loaned to other financial institutions;
(5) interest income and interest expenses;
(6) recovery of loans previously written off;
(7) cash receipts or payments from securities transactions of an enterprise whose business
is securities trading;
(8) cash receipts from finance leases.
19. For insurance enterprises, cash receipts and payments arising from insurance premiums,
insurance claims, annuities and other insurance policy benefits should be classified as cash
flows from operating activities.
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4. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
PREPARATION OF A CASH FLOW STATEMENT
20. The cash flow statement should report cash flows of an enterprise during the current period
classified by operating, investing and financing activities.
21. Cash flows should generally be reported separately as gross cash inflows and outflows.
However, cash receipts and payments on behalf of customers and for items in which the
turnover is quick, the amounts are large, and the maturities are short, may be reported on a net
basis.
Cash flows arising from each of the following activities of a financial institution should be
presented on a net basis:
(1) short-term loans made and the repayment of the principal of such loans;
(2) the acceptance and withdrawal of demand deposits;
(3) the placement of deposits with and withdrawal of deposits from other financial
institutions;
(4) funds borrowed from or loaned to other financial institutions;
(5) the acceptance of designated deposits and transfer of the funds to designated parties;
and
(6) sales and purchases of securities by an enterprise whose business is securities trading;
22. Cash flows arising from transactions in a foreign currency and the cash flows of a foreign
subsidiary should be translated at the exchange rates at the dates of the cash flows or at
average rates. The effect of changes in exchange rate on cash should be regarded as a
reconciling item and presented separately in the cash flow statement.
23. Some extraordinary items, such as a loss from a natural disaster or an insurance claim should
be classified in accordance with their nature as arising from the above cash flow categories
and presented separately.
24. An enterprise should report cash flows from operating activities using the direct method,
whereby major classes of cash receipts and cash payments are disclosed to reflect cash flows
from operating activities of the enterprise.
When the direct method is used, information about cash flows from operating activities may
be obtained either:
(1) from the accounting records of the enterprise; or
(2) by adjusting operating income, operating costs and other items in the income
statement for:
changes during the current period in inventories and operating receivables
and payables;
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5. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
depreciation of fixed assets, amortisation of intangible assets and other non-
cash items;
other items for which the cash effects are investing or financing cash flows.
25. An enterprise should disclose a reconciliation of net profit to cash flow from operating
activities in a note to the accounting statements.
The principal items used to adjust the net profit or loss primarily include:
(1) provision for impairment losses of assets ;
(2) depreciation of fixed assets;
(3) amortisation of intangible assets;
(4) amortisation of long-term prepaid expenses;
(5) prepaid expenses;
(6) accrued expenses;
(7) gains or losses on disposal of fixed assets, intangible assets and other long-term
assets;
(8) losses on scrapping of fixed assets;
(9) financial expenses;
(10) gains or losses arising on investments;
(11) deferred tax;
(12) inventories;
(13) operating receivables;
(14) operating payables;
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6. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
INVESTING AND FINANCING ACTIVITIES THAT DO NOT INVOLVE CASH RECEIPTS
OR PAYMENTS
26. Significant investing and financing activities that do not affect receipts and payments of cash
in the current period, but may affect the financial position or future cash flows of an
enterprise, should be explained in the notes to the accounting statements. Such activities
include the acquisition of assets by assuming liabilities.
SUPPLEMENTARY PROVISION
27. This Standard becomes operative as from 1 January 2001.
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7. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
APPENDIX : FORMAT OF CASH FLOW STATEMENT FOR REFERENCE
CASH FLOW STATEMENT
Prepared by: Period: Unit :
Items Line No. Amount
1. CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from sales of goods or rendering of services 1
Refunds of taxes 3
Other cash received relating to operating activities 8
Sub-total of cash inflows 9
Cash paid for goods and services 10
Cash paid to and on behalf of employees 12
Payments of all types of taxes 13
Cash paid relating to other operating activities 18
Sub-total of cash outflows 20
Net cash flows from operating activities 21
2. CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received from return of investments 22
Cash received from return on investments 23
Cash received relating to other investing activities 25
Sub-total of cash inflows 28
Cash paid to acquire fixed assets, intangible assets and other long-term assets 29
Cash paid to acquire investments 30
Cash paid relating to other investing activities 31
Cash paid relating to other investing activities 35
Sub-total of cash outflows 36
Net cash flows from investing activities 37
3. CASH FLOWS FROM FINANCING ACTIVITIES:
Cash received from investments by others 38
Cash received from borrowings 40
Cash received relating to other financing activities 43
Sub-total of cash inflows 44
Cash repayments of amounts borrowed 45
Cash paid for distribution of dividends or profits and for interest expenses 46
Cash paid relating to other financing activities 52
Sub-total of cash outflows 53
Net cash flows from financing activities 54
4. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 55
5. NET INCREASE IN CASH AND CASH EQUIVALENTS 56
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8. ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES
CASH FLOW STATEMENTS [Revised 01/2001]
Supplementary information Line No. Amount
1. RECONCILIATION OF NET PROFIT TO CASH FLOWS FROM
OPERATING ACTIVITIES
Net profit 57
Add:Provision for impairment losses of assets 58
Depreciation of fixed assets 59
Amortisation of intangible assets 60
Amortisation of long term prepaid expenses 61
Decrease in prepaid expenses (or deduct: increase) 64
Increase in accrued expenses (or deduct: decrease) 65
Losses on disposal of fixed assets, intangible assets and other long-term 66
assets (or deduct: gains) 67
Losses on scrapping of fixed assets 68
Financial expenses (or deduct: income) 69
Losses arising from investments (or deduct: gains) 70
Deferred tax credit (or deduct: debit) 71
Decrease in inventories (or deduct: increase) 72
Decrease in operating receivables (or deduct: increase) 73
Increase in operating payables (or deduct: decrease) 74
Others 75
Net cash flows from operating activities
2. INVESTING AND FINANCING ACTIVITIES THAT DO NOT
INVOLVING CASH RECEIPTS AND PAYMENTS
Conversion of debt into capital 76
Reclassify convertible bonds to be expired within one year as current liability 77
Fixed assets financed by finance leases 78
3. NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash at the end of the period 79
Less: Cash at the beginning of the period 80
Plus: Cash equivalents at the end of the period 81
Less: Cash equivalents at the beginning of the period 82
Net increase in cash and cash equivalents 83
Note: An enterprise may adopt the format of cash flow statement before this revision.
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