现金流量表的编制——讲解附例题解析

1、statement of cash flows1learning objectivesprepare a statement of cash flows in accordance with ias 7analyse a statement of cash flowscritically discuss their strengths and weaknesses2importance of the cfscash not picked up in income statementprofit does not equal cash“cash is king!”ias 7 statement

2、of cash flows3the objective of the cfsrequires companies to provide a standardised report on their cash generation and cash absorption during the accounting period.useful to users to assess the ability of the enterprise to generate and utilise cash effectively stewardship financial adaptabilityprima

3、ry financial statement4cfs main featuressummary of cash receipts/payments similar to your own bank statements5the relationship between the statement of financial position, the income statement and the statement of cash flowsstatement of financial position at the start of the accounting periodequityc

4、ash and cash equivalentsstatement of cash flowsincome statementstatement of financial position at the end of the accounting periodequitycash and cash equivalents6format of the cfsspecified in ias 7 (issued 1992)three standard headings operating activities investing activities financing activities7st

5、andard layout of the statement of cash flowsequalsplus or minusnet increase (or decrease) in cash and cash equivalents over the periodcash flowsfrom operating activitiescash flowsfrom investing activitiescash flowsfrom financing activitiesplus or minus8example of a cfs000cash flows from operating ac

6、tivities 760cash flows from investing activities(300)cash flows from financing activities net increase in cash and cash equiv. 580cash and cash equiv at start of period cash and cash equiv at end of period 9tesco plcsummarised cash flow statement for the half year to 26 august 2006*this adjustment i

7、s required because transactions are undertaken by the business in different currencies and movements in exchange rates can lead to gains or losses. 10cash flows fromoperating activitiesdirect methodindirect method11the direct methodcash receipts from customers xcash paid to suppliers(x)cash paid to

8、employees(x)cash paid for other operating exp(x)interest paid(maybe in financing)(x)taxes paid(x)12the indirect methodprofit before tax xdepreciation xinterest expense xchanges in working capital xinterest paid (can be in financing)(x)taxes paid (x)dividends paid (can be in financing)(x)13cash flows

9、 from investing activitiescash receipts from disposal of non-current assetscash receipts from disposal of investments in subsidiariescash payments to acquire non-current assetscash payments to acquire investments in subsidiariesdividends or interest received from investments (can also be in operatin

10、g activities)14cash flows from financing activitiescash receipts from issue of sharescash payments to redeem sharescash receipts from issuing loans or debenturescash payments to repay loans or debenturesdividends paid (can be in operating activities)interest paid (can be in operating activities)capi

11、tal element of payment of finance lease15direct method v indirect method need to work out:receipts from customerspayments to suppliersreconcile operating profit in income statement to cash inflow or outflow by adjusting for non-cash items and working capital movements16direct method000revenue 480+ o

12、pening receivables 55- closing receivables 17payments to suppliers000materials 210+ closing inventories 48-opening inventories = materials purchased 222+ opening payables 29-closing payables 18direct methodcashflow from operationsreceipts from customerspayments to supplierspayments to employeesrenta

13、l incomeother payments (auditors fees)taxationcashflow from operating activities000473(217)(88)10(15)(95)68indirect methodoperating profitdepreciationgain on saleincrease in inventoriesincrease in receivablesincrease in payablesinterest payabletaxation paidcashflow from operating activities17047(55)

14、(12)(7)515(95)68investing activitiescash from sales of ncacash paid for new ncacashflow from investing activities00065(8)57analysis of ncanet book value bfwdadditionsdisposalsrevaluationdepreciationnet book value cfwd000203?(10)56(47)2100002038(10)56(47)210financing activitiesshare capital raiseddeb

15、entures issueddividends paidinterest paid00020153(15)(18)140workings20+5-1015+6-3cashflow statementcashflows from operating activitiescashflows from investing activitiescashflows from financing activitiesnet increase in cash and cash equivalentscash and cash equivalents at start of periodcash and ca

16、sh equivalents at end of period000685714026550315analysing cashflow statementsmakes it easier to see where money in coming from and where it is spentshould cashflow from operating activities by high?is the company raising new finance if so are there any indications why and how this is being used how much is being used to fund in replacing ncashow much interest, dividends and tax is the company payingused in conjunction with other financial statements and ratio analysiscriti