TAILIEUCHUNG - Lecture Intermediate accounting (Volume 2, 11th Canadian edition) – Chapter 22: Statement of cash flows

After studying this chapter, you should be able to: Understand the business importance of cash flows and describe the purpose and uses of the statement of cash flows, define cash and cash equivalents, identify the major classifications of cash flows and explain the significance of each classification,. | 1 CHAPTER 22: STATEMENT OF CASH FLOWS 2 2 CHAPTER 22: Statement of Cash Flows After studying this chapter, you should be able to: Understand the business importance of cash flows and describe the purpose and uses of the statement of cash flows. Define cash and cash equivalents. Identify the major classifications of cash flows and explain the significance of each classification. Prepare the operating activities section of a statement of cash flows using the direct versus the indirect method. Prepare a statement of cash flows using the direct method. Prepare a statement of cash flows using the indirect method. Prepare a more complex statement of cash flows using both methods. Identify the financial presentation and disclosure requirements for the statement of cash flows. Read and interpret a statement of cash flows. Identify differences in IFRS and APSE, and explain what changes are expected to standards for the statement of cash flows. Use a work sheet to prepare a statement of cash flows. 3 3 Cash Flows from a Business Perspective A lack of cash flow is one of the main causes of bankruptcy A sign of a healthy company is positive cash flows from operations Over the years, the statement of cash flows has grown in importance Helps users answer many questions such as: Will the company be able to pay dividends? How was the acquisition of the new subsidiary financed? 4 LO1 Understand the business importance of cash flows and describe the purpose and uses of the statement of cash flows. 4 Purpose and Usefulness of the Statement of Cash Flows The information helps users (investors, creditors, and others) assess the following: Liquidity and solvency – ., the entity’s ability to generate future cash flows and its needs for cash resources The amounts, timing, and uncertainty of future cash flows The reasons why net income and net cash flow from operating activities differ 5 5 LO1 Understand the business importance of cash flows and describe the purpose and uses of the .

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• Intermediate accounting
• Lecture Intermediate accounting
• Financial reporting
• Statement of cash flows
• Cash equivalents
• Direct method
• Financial Accounting
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Accrual accounting
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process