The statement of cash flows is one of the most important and illustrative financial statements for a business. This statement is required as part of a full set of financial statements, and must be prepared in conformity with generally accepted accounting principles. The statement of cash flows also must be included in both annual and interim financial statements.
This course discusses the requirements of ASC 230, Statement of Cash Flows and ASC 958-205, Not-for-Profit Entities: Presentation of Financial Statements, which requires the statement of cash flows for not-for-profit entities. Other topics covered in this course include 1) reconciling net income to cash flow from operations, 2) differentiating between operating, investing, and financing activities, 3) using ratios to analyze the cash flows, and much more. Numerous examples and sample statements make learning the topic practical and hands-on.
Upon successful completion of this course, participants will be able to:
- Recognize the use of and reportable transactions on a statement of cash flows.
- Identify cash inflows and outflows for operating, investing, and financing activities.
- Recognize how different cash variables affect the statement of cash flows.
- Recognize acceptable methods of reporting and differences between IFRS and U.S. GAAP for the statement of cash flows.
Table of Contents
Cash Flow Statement Format
Steps in Preparation of Statement of Cash Flows
Cash and Cash Equivalents
Reconciliation of Net Income to Cash Flow from Operations
Indirect (Reconciliation) Method
Gross vs. Net Cash Flows
Noncash Investing and Financing Activities
Special Items in the Income Statement
Foreign Currency Cash Flows
Example Two- Direct and Indirect Methods
Cash Flow Analysis
Free Cash Flow
IFRS Differences Affecting the Statement of Cash Flows
Review Question Answers and Rationales
Annual Report References
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