f7课件20 statements of cash flows_W

1、Subsequent EventIntroduction（现金流量表）Level1Level 2optionalDefinitionYLogicYY2013/06 Q3Y2015/06 Q3YInterpretation of statements of cash flowsY读报与中国股市YDefinitionPurpose of the statement of cash flowsThe purpose of the statement of cash flows is to show the effect of a companys commercial transactions on

2、 its cash balance.It is thought that users of accounts can readily understand cash flows, as opposed to statements of profit or loss and other comprehensive income and statements of financial position which are subject to manipulation by the use of different accounting policies.Cash flows are used i

3、n investment appraisal methods such as net present value and hence a statement of cash flows gives potential investors the chance to evaluate a business.Cash & Cash equivalentsCash comprises cash on hand and demand depositsCash equivalents are short-term, highly liquid investments that are readily c

4、onvertible into known amounts of cash and which are subject to an insignificant risk of changes in value.FormatsIAS 7 allows two possible layouts for the statement of cash flows in respect of operating activities:a)The indirect method, where profit before tax is reconciled to operating cash flow.The

5、 direct method, where the cash flows themselves are shown.b)Sections of the statementIAS 7 Statement of Cash Flows splits cash flows into three sections:Cash flows from operating activitiesCash flows from investing activities Cash flows from financing activitiesOperating activitiesCash flows from op

6、erating activities are primarily derived from the principal revenue producing activities of the entity. Therefore they generally result from the transactions or other events that enter into the determination of profit or loss.The amount of cash flows arising from operating activities is a key indica

7、tor of the extent to which the operations of the entity have generated sufficient cash flows to repay loans, maintain the operating capability of the entity, pay dividends and make new investments without recourse to external sources of finance.Investing activitiesThe cash flows included in this sec

8、tion are those related to the acquisition or disposal of any non-current assets, or trade investments together with returns received in cash from investments, i.e. dividends and interest.This section shows the extent of new investment in assets which will generate future income and cash flows.Financ

9、ing activitiesFinancing cash flows comprise receipts from or repayments to external providers of finance in respect of principal amounts of finance. Examples of financing cash flows are:Cash proceeds from issuing shares Dividends paid to shareholdersCash proceeds from issuing loan notesCash repaymen

10、ts of amounts borrowed Finance lease liability paymentsYoure a Champion!Thanks for staying with us. You have finished this task.LogicLogicLogic 现金收入/费用 非现金费用 折旧 OCI 固定资产重估 对利润和现金都有影响但可能不同 固定资产处置 不影响利润的现金收支 固定资产投资 发股Youre a Champion!Thanks for staying with us. You have finished this task.Subsequent E

11、ventJune 2013 Q3Monty is a publicly listed company. Its financial statements for the year ended 31 March 2013 including comparatives are shown below:Statements of profit or loss and other comprehensive income for the year ended:31 March 2013$00031,000(21,800)9,200(3,600)(2,200)(150)(250) 3,000(1,000

12、) 2,0001,3503,35031 March 2012$00025,000(18,600)6,400(2,400)(1,600)(250)(100)2,050(750)1,300nil 1,300Revenue Cost of sales Gross profitDistribution costs Administrative expenses Finance costs loan interest lease interest Profit before tax Income tax expense Profit for the yearOther comprehensive inc

13、ome (note (i)Statements of financial position as at:31 March 201331 March 2012$000$000$000$000AssetsNon-current assetsProperty, plant and equipment Deferred development expenditure14,0001,00015,00010,700nil 10,700Current assets InventoryTrade receivables BankTotal assets3,3002,950503,8002,2001,3006,

14、30021,3007,30018,000Equity and liabilities EquityEquity shares of $1 each Revaluation reserve Retained earnings8,0001,3503,20012,5508,000nil 1,7509,750Non-current liabilities 8% loan notes Deferred taxFinance lease obligation Current liabilities Finance lease obligation Trade payablesCurrent tax pay

15、ableTotal equity and liabilities1,4001,500 1,200 3,1258009004,1004,8257502,6501,2506002,100725 4,65021,3003,42518,000Notes:I.On 1 July 2012, Monty acquired additional plant under a finance lease that had a fair value of $15 million. On this date it also revalued its property upwards by $2 million an

16、d transferred$650,000 of the resulting revaluation reserve this created to deferred tax. There were no disposals of non-current assets during the period.II.Depreciation of property, plant and equipment was $900,000 and amortisation of the deferred development expenditure was$200,000 for the year end

17、ed 31 March 2013.Required:a)Prepare a statement of cash flows for Monty for the year ended 31 March 2013, in accordance with IAS 7 Statement of Cash Flows,using the indirect method.(15 marks)Youre a Champion!Thanks for staying with us. You have finished this task.F7 2015 June Q3Q3The following trial

18、 balance relates to Clarion as at 31 March 2015:$000Equity shares of $1 each (note (i) Retained earnings 1 April 2014Other component of equity share premium (note (i)8% loan notes (note (ii)$00030,0008,6005,00020,000Plant and equipment at cost (note (iii)Accumulated depreciation plant and equipment

19、1 April 2014 Investments through profit or loss value at 1 April 2014 (note (iv) Inventory at 31 March 2015Trade receivablesBank85,00019,0006,00011,70018,5001,900Q3$000$0002,7009,4004,0004,200132,000Deferred tax (note (vi) Trade payablesEnvironmental provision (note (iii) Finance lease obligation (n

20、ote (iii) RevenueCost of salesOperating lease payments (note (v) Administrative expenses Distribution costsLoan note interest paid Suspense account (note (ii) Bank interestDividends paidInvestment income (note (iv) Current tax (note (vi)88,3002,0008,0007,4008005,8003003,900500400237,700 237,700Q3The

21、 following notes are also relevant:I.The equity shares and share premium balances in the trial balance above include a fully subscribed 1 for 5 rights issue at $160 per share which was made by Clarion on 1 October 2014. The market value of Clarions shares was $250 on 1 October 2014 .On 31 March 2015

22、, one quarter of the 8% loan notes were redeemed at par and six months outstanding loan interest was paid. The suspense account represents the double entry corresponding to the cash payment for the capital redemption and the outstanding interest.II.Q3III.Property, plant and equipment:Included in pro

23、perty, plant and equipment are two major items of plant acquired on 1 April 2014:Item 1 had a cash cost $14 million, however, the plant will cause environmental damage which will have to be rectified when it is dismantled at the end of its five year life. The present value (discounting at 8%) on 1 A

24、pril 2014 of the rectification is $4 million. The environmental provision has been correctly accounted for, however, no finance cost has yet been charged on the provision.Q3Item 2 was plant acquired with a fair value of $8 million under a five-year finance lease. This required an initial deposit of

25、$23 million and annual payments of $15 million on 31 March each year. The finance lease obligation in the trial balance above represents the fair value of the plant less both the deposit and the first annual payment. The lease has an implicit interest rate of 10% and the asset has been correctly cap

26、italised in plant and equipment.No depreciation has yet been charged on plant and equipment which should be charged to cost of sales on a straight-line basis over a five-year life (including leased plant). No plant is more than four years old.Q3IV.The investments through profit or loss are those hel

27、d at 31 March 2015 (after the sale below). They are carried at their fair value as at 1 April 2014, however, they had a fair value of $65 million on 31 March 2015. During the year an investment which had a carrying amount of $14million was sold for $16 million . Investment income in the trial balanc

28、e above includes the profit on the sale of the investment and dividends received during the year.Q3Required:a)Prepare the statement of profit or loss for Clarion for the year ended 31 March 2015.Prepare the statement of changes in equity for Clarion for the year ended 31 March 2015.Prepare the state

29、ment of financial position for Clarion as at 31 March 2015.Notes to the financial statements are not required.b)c)d)Calculate the basic earnings per share of Clarion for the year ended 31 March 2015. (3 marks)Prepare extracts from the statement of cash flows for Clarion for the year ended 31 March 2

30、015 in respect of cash flows from investing (ignore investment income) and financing activities. (4 marks)(30 marks)e)Answere) Clarion Extracts from the statement of cash flows for the year ended 31 March 2015$000Cash flows from investing activitiesPurchase of plant and equipment Sale of investments

31、Cash flows from financing activities Issue of shares (see part (b) Redemption of loan notes (w (vii)Repayment of finance lease (2,300 + (1,500 570) Equity dividends paid(14,000)1,6008,000(5,000)(3,230)(3,900)Answerb) Clarion Statement of changes in equity for the year ended 31 March 2015Share capita

32、l$000 25,0005,000Share premium$000 2,0003,000Retained earnings$000 8,600Total equity$000 35,6008,000(3,900)4,86044,560Balance at 1 April 2014 Rights issue (see below) Dividends paidProfit for the year(3,900)4,8609,560 5,000Balance at 31 March 2015 30,000 Prior to the 1 for 5 rights issue there were

33、25 million (30,0005/6) shares in issue. Therefore the rights issue was 5 million shares at $160 each ($8 million), giving additional share capital of $5 million and share premium of $3 million(5 million60 cents).Answer(v) Leased plant/finance lease obligationFair value of plant/initial obligation (4

34、,200 + 2,300 + 1,500)Less deposit8,000(2,300)5,700570(1,500)4,770477(1,500)3,747Interest at 10% to 31 March 2015 Less first annual payment Liability at 31 March 2015Interest at 10% to 31 March 2016 Less second annual payment Liability at 31 March 2016Interpretation of statements of cash flowsAnalysi

35、s points(a)(b)Overall increase/decrease in cash.What are the significant components in the cash flows?Analysis points(c) How do the cash flows compare to expectations? E.g:Operating activities key inflow Investing activities key outflowFinancing activities how the business has financed acquisitions/

36、purchases of assetsCash generated from operations vs interest, income taxAnalysis points(d)Reconciliation of profit before tax to cash generatedfrom operations impact of accounting policies, e.g. deferral of expenditure, recognition of income where no cash generated movements in working capital, e.g

37、. build up of inventories/receivables signs of overtradingAnalysis points(e) Ratio analysis (examples of ratios): Cash return on capital employedCash generated from operations Total assets less current liabilities= 100% Cash generated from operations to total debtCash generated from operationsTotal

38、debt= Net cash from operating activities to capital expenditureNet cash from operating activities 100%=Net capital expenditureYoure a Champion!Thanks for staying with us. You have finished this task.读报与中国股市Youre a Champion!Thanks for staying with us. You have finished this task.OT1Statement of cash

39、flowsB246Extracts from the statements of financial position of Nedburg are as follows. Statements of financial position as at 30 September:20X2$m 75035020X1$m 500100Ordinary shares of $1 each Share premiumOn 1 October 20X1 a bonus issue of one new share for every 10 held was made, financed from the

40、share premium account. This was followed by a further issue for cash. What amount will appear under cash flows from financing activities in the statement of cash flows of Nedburg for the year ended 30 September 20X2 in respect of share issues?A.B.C.D.$500 million$450 million$550 million$250 million(

41、2 marks)B246Answer A$m6005001,100B/f (500 + 100)Cash received () C/f (750 + 350)B247The statement of financial position of Pinto at 31 March 20X7 showed property, plant and equipment with a carrying amount of $1,860,000. At 31 March 20X8 it had increased to $2,880,000.During the year to 31 March 20X

42、8 plant with a carrying amount of$240,000 was sold at a loss of $90,000, depreciation of $280,000 was charged and $100,000 was added to the revaluation surplus in respect of property, plant and equipment.What amount should appear under investing activities in the statement of cash flows of Pinto for

43、 the year ended 31 March 20X8 as cash paid to acquire property, plant and equipment?A.B.C.D.$1,640,000$1,440,000$1,260,000$1,350,000(2 marks)B247Answer B$0001,860100(240)(280)1,4401,4402,880Balance b/f Revaluation DisposalDepreciationAdditions ()Balance c/fB248The following information is available

44、for the property, plant and equipment of Fry as at 30 September:20X4$000 23,40020X3$000 14,400Carrying amountsThe following items were recorded during the year ended 30 September 20X4:(i)(ii)Depreciation charge of $2.5 millionAn item of plant with a carrying amount of $3 million was sold for$1.8 mil

45、lionA property was revalued upwards by $2 millionEnvironmental provisions of $4 million relating to property, plant and equipment were capitalised during the year(iii)(iv)B248What amount would be shown in Frys statement of cash flows for purchase of property, plant and equipment for the year ended 30 September 20X4?A.B.C.D.$8.5 million$12.5 milli