现金流量表的编制-讲解附例题解析.ppt

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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 Requires companies to provide a standardised report on their cash generation and cash report on their cash generation and cash absorption during the accounting period.absorption during the accounting period.Useful to

3、users to assess the ability of the Useful to users to assess the ability of the enterprise to generate and utilise cash enterprise to generate and utilise cash effectivelyeffectively StewardshipStewardship Financial adaptabilityFinancial adaptabilityPrimary financial statementPrimary financial state

4、ment4CFS main featuresSummary of cash receipts/paymentssimilar to your own bank statementssimilar to your own bank statementsDefinition of cash and cash equivalentsCash=notes,coins,deposits on demandCash=notes,coins,deposits on demandCash equivalents=short-term,highly liquid Cash equivalents=short-t

5、erm,highly liquid investments readily convertible into cashinvestments readily convertible into cash5The 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 periodEquityCash and ca

6、sh 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 headingsOperating activitiesOperating activitiesInvesting activitiesInvesting activit

7、iesFinancing activitiesFinancing activitiesTwo methodsDirect methodDirect methodIndirect methodIndirect method7Standard layout of the statement of cash flowsequalsplus or minusNet increase(or decrease)in cash and cash equivalents over the periodCash flowsfrom operating activitiesCash flowsfrom inves

8、ting activitiesCash flowsfrom financing activitiesplus or minus8Example of a CFS000000Cash flows from operating activitiesCash flows from operating activities 760 760Cash flows from investing activitiesCash flows from investing activities(300)(300)Cash flows from financing activitiesCash flows from

9、financing activities 120120Net increase in cash and cash equiv.Net increase in cash and cash equiv.580 580Cash and cash equiv at start of periodCash and cash equiv at start of period 270270Cash and cash equiv at end of periodCash and cash equiv at end of period 8508509Tesco plcSummarised cash flow s

10、tatement for the half year to 26 August 2006 mmNet cash from operating activities Net cash from operating activities 1,3191,319Net cash used in investing activitiesNet cash used in investing activities(1,109)(1,109)Net cash used in financing activitiesNet cash used in financing activities (124)(124)

11、Net increase in cash and cash equivalentsNet increase in cash and cash equivalents 8686Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period 1,3251,325Effects of foreign exchange rate changes*Effects of foreign exchange rate changes*(21)(21)Cash and cash eq

12、uivalents at end of periodCash and cash equivalents at end of period 1,3901,390*This adjustment is 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 activities2 methodsDirect met

13、hodIndirect method11The direct methodCash receipts from customers Cash receipts from customers x xCash paid to suppliersCash paid to suppliers(x)(x)Cash paid to employeesCash paid to employees(x)(x)Cash paid for other operating expCash paid for other operating exp(x)(x)Interest paidInterest paid(may

14、be in financing)(maybe in financing)(x)(x)Taxes paidTaxes paid(x)(x)Net cash from operating activities xNet cash from operating activities x12The indirect methodProfit before taxProfit before tax x xDepreciationDepreciation x xInterest expense Interest expense x xChanges in working capitalChanges in

15、 working capital x xInterest paid(can be in financing)Interest paid(can be in financing)(x)(x)Taxes paid Taxes paid(x)(x)Dividends paid(can be in financing)Dividends paid(can be in financing)(x)(x)Net cash from operating activities xNet cash from operating activities x13Cash flows from investing act

16、ivitiesCash receipts from disposal of non-current assetsCash receipts from disposal of non-current assetsCash receipts from disposal of investments in Cash receipts from disposal of investments in subsidiariessubsidiariesCash payments to acquire non-current assetsCash payments to acquire non-current

17、 assetsCash payments to acquire investments in subsidiariesCash payments to acquire investments in subsidiariesDividends or interest received from investments(can Dividends or interest received from investments(can also be in operating activities)also be in operating activities)14Cash flows from fin

18、ancing activitiesCash receipts from issue of sharesCash receipts from issue of sharesCash payments to redeem sharesCash payments to redeem sharesCash receipts from issuing loans or debenturesCash receipts from issuing loans or debenturesCash payments to repay loans or debenturesCash payments to repa

19、y loans or debenturesDividends paid(can be in operating activities)Dividends paid(can be in operating activities)Interest paid(can be in operating activities)Interest paid(can be in operating activities)Capital element of payment of finance leaseCapital element of payment of finance lease15Direct Me

20、thod v Indirect methodDirect method need to work out:Receipts from customersPayments to suppliersIndirect methodReconcile operating profit in income statement to cash inflow or outflow by adjusting for non-cash items and working capital movements16Direct methodReceipts from customers:000Revenue 480+

21、opening receivables 55-closing receivables (62)Receipts from customers 47317Payments to suppliers000000MaterialsMaterials 210 210+closing inventories+closing inventories 48 48-opening inventoriesopening inventories (36)(36)=materials purchased=materials purchased 222 222+opening payables+opening pay

22、ables 29 29-closing payablesclosing payables (34)(34)Payments to suppliersPayments to suppliers 21721718Direct methodCashflow from operations000000Receipts from customersReceipts from customers473473Payments to suppliersPayments to suppliers(217)(217)Payments to employeesPayments to employees(88)(88

23、)Rental incomeRental income1010Other payments(auditors fees)Other payments(auditors fees)(15)(15)taxationtaxation(95)(95)Cashflow from operating activitiesCashflow from operating activities6868Indirect methodOperating profitOperating profit170170DepreciationDepreciation4747Gain on saleGain on sale(5

24、5)(55)Increase in inventoriesIncrease in inventories(12)(12)Increase in receivablesIncrease in receivables(7)(7)Increase in payablesIncrease in payables5 5Interest payableInterest payable1515Taxation paidTaxation paid(95)(95)Cashflow from operating activitiesCashflow from operating activities6868Inv

25、esting activities000000Cash from sales of ncaCash from sales of nca6565Cash paid for new ncaCash paid for new nca(8)(8)Cashflow from Cashflow from investing activitiesinvesting activities5757Analysis of nca000000000000Net book value bfwdNet book value bfwd203203203203AdditionsAdditions?8 8DisposalsD

26、isposals(10)(10)(10)(10)revaluationrevaluation56565656depreciationdepreciation(47)(47)(47)(47)Net book value cfwdNet book value cfwd210210210210Financing activities000000workingsworkingsShare capital raisedShare capital raised2020Debentures issuedDebentures issued153153Dividends paidDividends paid(1

27、5)(15)20+5-1020+5-10Interest paidInterest paid(18)(18)15+6-315+6-3140140Cashflow statement000000Cashflows from operating activitiesCashflows from operating activities6868Cashflows from investing activitiesCashflows from investing activities5757Cashflows from financing activitiesCashflows from financ

28、ing activities140140Net increase in cash and cash equivalentsNet increase in cash and cash equivalents265265Cash and cash equivalents at start of periodCash and cash equivalents at start of period5050Cash and cash equivalents at end of periodCash and cash equivalents at end of period315315Analysing

29、cashflow statementsMakes it easier to see where money in coming from and Makes it easier to see where money in coming from and where it is spentwhere it is spentShould cashflow from operating activities by high?Should cashflow from operating activities by high?Is the company raising new finance if s

30、o are there any Is the company raising new finance if so are there any indications why and how this is being used how much indications why and how this is being used how much is being used to fund in replacing ncasis being used to fund in replacing ncasHow much interest,dividends and tax is the comp

31、any How much interest,dividends and tax is the company payingpayingUsed in conjunction with other financial statements and Used in conjunction with other financial statements and ratio analysisratio analysisCritique of cashflow statements BenefitsBenefits More user focused that More user focused tha

32、t source and application of source and application of funds which focused on funds which focused on working capitalworking capital Focus on cash which helps Focus on cash which helps to assess stewardship,to assess stewardship,liquidity and adaptability of liquidity and adaptability of companycompan

33、y Stricter requirements on Stricter requirements on presentation and format presentation and format than beforethan before LimitationsLimitations Choice between indirect and Choice between indirect and direct methoddirect method Choice of where to present Choice of where to present interestinterest

34、Reduced scope for innovation Reduced scope for innovation since lots more prescriptionsince lots more prescription Currently under review Currently under review moving towards direct method moving towards direct method and revised formats more and revised formats more consistent with other financial consistent with other financial statementsstatements