Scribd Logo
Upload

Welcome to Scribd!

  • 27 views

    Class 8 - Financial Statements

    Uploaded by

    anika_nikl
    The controller is responsible for preparing financial statements that clearly present the financial results, position, and cash flows of the business. The document discusses the direct and indirect methods for preparing the statement of cash flows, specifically the net cash flows from operating activities section. The direct method shows actual cash receipts and payments, while the indirect method focuses on the differences between net income and net cash flow from operating activities and links the statement of cash flows to the income statement and statement of financial position. Significant non-cash transactions that should be disclosed include acquisitions of assets through assuming liabilities or issuing equity, exchanges of non-monetary assets, refinancing of long-term debt, conversion of debt to equity, and issuance of

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Class 8 - Financial Statements

    Uploaded by

    anika_nikl
    27 views8 pages
    The controller is responsible for preparing financial statements that clearly present the financial results, position, and cash flows of the business. The document discusses the direct and indirect methods for preparing the statement of cash flows, specifically the net cash flows from operating activities section. The direct method shows actual cash receipts and payments, while the indirect method focuses on the differences between net income and net cash flow from operating activities and links the statement of cash flows to the income statement and statement of financial position. Significant non-cash transactions that should be disclosed include acquisitions of assets through assuming liabilities or issuing equity, exchanges of non-monetary assets, refinancing of long-term debt, conversion of debt to equity, and issuance of

    Original Description:

    power point Class 8 - Financial statements

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The controller is responsible for preparing financial statements that clearly present the financial results, position, and cash flows of the business. The document discusses the direct and indirect methods for preparing the statement of cash flows, specifically the net cash flows from operating activities section. The direct method shows actual cash receipts and payments, while the indirect method focuses on the differences between net income and net cash flow from operating activities and links the statement of cash flows to the income statement and statement of financial position. Significant non-cash transactions that should be disclosed include acquisitions of assets through assuming liabilities or issuing equity, exchanges of non-monetary assets, refinancing of long-term debt, conversion of debt to equity, and issuance of

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    27 views8 pages

    Class 8 - Financial Statements

    Uploaded by

    anika_nikl
    The controller is responsible for preparing financial statements that clearly present the financial results, position, and cash flows of the business. The document discusses the direct and indirect methods for preparing the statement of cash flows, specifically the net cash flows from operating activities section. The direct method shows actual cash receipts and payments, while the indirect method focuses on the differences between net income and net cash flow from operating activities and links the statement of cash flows to the income statement and statement of financial position. Significant non-cash transactions that should be disclosed include acquisitions of assets through assuming liabilities or issuing equity, exchanges of non-monetary assets, refinancing of long-term debt, conversion of debt to equity, and issuance of

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    Acct 6220

    Controllership and Financial


    Leadership

    Jami D. Jhabvala, CPA

    Financial Statements
    Introduction
    The controller may be judged on their administration of all
    the accounting functions, but will absolutely be judged on
    the quality and presentation of the financial statements
    issued by the accounting staff.
    Be familiar with the contents of each component of every
    financial statement, the different formats, and how to
    construct.

    Financial Statements
    Controller Responsibilities

    Prepare financial statement layouts that are understandable


    and clearly present the financial results, financial positions,
    and cash flows of the business.

    Net
    Net Cash
    Cash Flow
    Flow from
    from Operating
    Operating Activities
    Activities
    Indirect
    Indirect Versus
    Versus Direct
    Direct Method
    Method
    Indirect Method

    Adjustments Needed to Determine Net Cash Flow


    from Operating Activities.

    LO 7

    Net
    Net Cash
    Cash Flow
    Flow from
    from Operating
    Operating Activities
    Activities
    Indirect
    Indirect Versus
    Versus Direct
    Direct Method
    Method
    Direct Method

    Companies adjust each item in the income


    statement from the accrual basis to the cash basis.

    LO 7

    Net
    Net Cash
    Cash Flow
    Flow from
    from Operating
    Operating Activities
    Activities
    Indirect
    Indirect Versus
    Versus Direct
    Direct Method
    Method
    Direct Versus Indirect Controversy
    In Favor of the Direct Method

    Shows operating cash receipts and payments.

    Information about cash receipts and payments is more


    revealing of a companys ability
    1. to generate sufficient cash from operating activities to pay
    its debts,
    2. to reinvest in its operations, and
    3. to make distributions to its owners.

    Net
    Net Cash
    Cash Flow
    Flow from
    from Operating
    Operating Activities
    Activities
    Indirect
    Indirect Versus
    Versus Direct
    Direct Method
    Method
    Direct Versus Indirect Controversy
    In Favor of the Indirect Method

    Focuses on the differences between net income and net


    cash flow from operating activities.

    Provides link between the statement of cash flows and the


    income statement and statement of financial position.

    Significant
    Significant Non-Cash
    Non-Cash Transactions
    Transactions
    Common non-cash transactions that a company should
    disclose:
    1. Acquisition of assets by assuming liabilities (including finance
    lease obligations) or by issuing equity securities.
    2. Exchanges of non-monetary assets.
    3. Refinancing of long-term debt.
    4. Conversion of debt or preference shares to ordinary shares.
    5. Issuance of equity securities to retire debt.

    You might also like