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1
Price III, Richard A. "Cash Flows at Amazon.com." Issues in Accounting Education 28, no. 2 (April 1, 2012): 353–74. http://dx.doi.org/10.2308/iace-50182.
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ABSTRACT: This instructional case illustrates how Amazon.com's strategy has evolved over time and how these characteristics are reflected in the financial statements. A particular emphasis is placed on the cash flow statement. Students evaluate the cash flow statement and examine its articulation with the other financial statements. Students create a direct method cash flow statement in the year of Amazon.com's initial public offering using the information available in the financial statements.
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Khansalar, Ehsan, and Mohammad Namazi. "Cash flow disaggregation and prediction of cash flow." Journal of Applied Accounting Research 18, no. 4 (November 13, 2017): 464–79. http://dx.doi.org/10.1108/jaar-02-2015-0011.
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Purpose The purpose of this paper is to investigate the incremental information content of estimates of cash flow components in predicting future cash flows. Design/methodology/approach The authors examine whether the models incorporating components of operating cash flow from income statements and balance sheets using the direct method are associated with smaller prediction errors than the models incorporating core and non-core cash flow. Findings Using data from US and UK firms and multiple regression analysis, the authors find that around 60 per cent of a current year’s cash flow will persist into the next period’s cash flows, and that income statement and balance sheet variables persist similarly. The explanatory power and predictive ability of disaggregated cash flow models are superior to that of an aggregated model, and further disaggregating previously applied core and non-core cash flows provides incremental information about income statement and balance sheet items that enhances prediction of future cash flows. Disaggregated models and their components produce lower out-of-sample prediction errors than an aggregated model. Research limitations/implications This study improves our appreciation of the behaviour of cash flow components and confirms the need for detailed cash flow information in accordance with the articulation of financial statements. Practical implications The findings are relevant to investors and analysts in predicting future cash flows and to regulators with respect to disclosure requirements and recommendations. Social implications The findings are also relevant to financial statement users interested in better predicting a firm’s future cash flows and thereby, its firm’s value. Originality/value This paper contributes to the existing literature by further disaggregating cash flow items into their underlying items from income statements and balance sheets.
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Kim, Seung Hwan. "Finding an Easier Way to Explain the Statement of Cash Flows." International Journal of Accounting and Financial Reporting 11, no. 3 (August 29, 2021): 25. http://dx.doi.org/10.5296/ijafr.v11i3.18892.
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The statement of cash flows is one of the required financial statements of public companies, and thus is required of all accounting majors. After learning the other required financial statements in an introductory financial accounting course and, again, in the first intermediate accounting course, accounting majors learn how to prepare the statement of cash flows in the second or last intermediate accounting course. Most accounting majors find the statement of cash flows significantly more difficult to learn than any other financial statements. Especially, students find it most difficult to understand the indirect method of preparing the statement of cash flows. Preparing the statement of cash flows using the indirect method, students go through the most difficult time, specifically, doing the adjustments that are made to net income to reconcile to cash flows from operating activities.In this paper, presented is a different way to explain the principles of indirect method of preparing the statement of cash flows with a focus on the reconciliation of net income to cash flows from operating activities. Different from the explanations in the textbooks available in the market, the approach presented in the paper is preferred by all the students who were taught the statement of cash flows. Also, pointed out in the paper are a few things that students are easily confused of in learning the statement of cash flows.
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Picconi, Marc P., Kimberly J. Smith, and Alexander Woods. "Arborista, Inc.: An Instructional Resource Case." Issues in Accounting Education 28, no. 3 (March 1, 2013): 681–90. http://dx.doi.org/10.2308/iace-50452.
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ABSTRACT: This deceptively simple case is intended for use as early as the first day of an M.B.A. core accounting course or as a focused review for an undergraduate accounting course. It achieves three primary objectives: accelerating student learning about the statement of cash flows, emphasizing the importance of both the cash flow statement and the income statement in valuation and capital markets, and introducing the three primary financial statements as an integrated system. The case also features the use of the direct method of presenting operating cash flows, both as a pedagogical tool and to allow interested instructors to increase their focus on that method. We have found that students benefit from the early integration of the cash flow statement, as well as the ability to clearly understand how operating cash flows are similar to—and different from—net income. Finally, the case provides an optional managerial accounting module for instructors who teach a course that integrates financial and managerial accounting.
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Lucian, Cernusca. "The Statement Of Cash Flows." Annales Universitatis Apulensis Series Oeconomica 1, no. 9 (June 30, 2007): 199–204. http://dx.doi.org/10.29302/oeconomica.2007.9.1.31.
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Petro, Fred, and Farrell Gean. "A Logical Approach To The Statement Of Cash Flows." American Journal of Business Education (AJBE) 7, no. 4 (September 29, 2014): 315–24. http://dx.doi.org/10.19030/ajbe.v7i4.8845.
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Of the three financial statements in financial reporting, the Statement of Cash Flows (SCF) is perhaps the most challenging. The most difficult aspect of the SCF is in developing an understanding of how previous transactions are finalized in this document. The purpose of this paper is to logically explain the indirect approach of cash flow whereby an understanding is established together with the mechanics of preparing the statement.
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Mackevičius, Jonas, and Kastytis Senkus. "THE SYSTEM OF FORMATION AND EVALUATION OF THE INFORMATION OF CASH FLOWS." Journal of Business Economics and Management 7, no. 4 (December 31, 2006): 171–82. http://dx.doi.org/10.3846/16111699.2006.9636139.
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A very urgent problem of formation of cash flows in conditions of the competitive market is considered in the present article. Cash flows are defined as the inflows and outflows of cash and cash equivalents, created within a certain period of time out of the operating, financial, investment and extraordinary activities of the company. Examples of cash flows out of the operating, financial and investment activities of the company are adduced. The system of formation and evaluation of the information about cash flows is created. Its principal elements are as follows: cash flow accounting, classification of cash flows, issuing of the cash flow statement, control and analysis of cash flows, cash flow forecasting. The methods of analysis of cash flows are created, i.e. the horizontal analysis of the cash flow statement; the vertical analysis of the cash flow statement; the analysis of financial ratios of the cash flow statement; preparation of the cash flow forecast. Practical application of the system of formation and evaluation of the information about cash flows would help the company managers to take various management decisions on evaluation of the company's financial condition and its activity results better, quicker and more precisely.
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Dugan, Michael T., Benton E. Gup, and William D. Samson. "Teaching the Statement of Cash Flows." Journal of Accounting Education 9, no. 1 (March 1991): 33–52. http://dx.doi.org/10.1016/0748-5751(91)90021-i.
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Al-Omush, Ahmed Mushref Salim, Ali Mohammad Al-Attar, and Walid Muhammad Masadeh. "The impacts of free cash surplus flows, audit quality and ownership on earnings management: The Jordan case." Corporate Ownership and Control 15, no. 4-1 (2018): 222–30. http://dx.doi.org/10.22495/cocv15i4c1p9.
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This paper primarily aims to identify and evaluate the effect of Free Cash Surplus flows, Audit Quality and the ownership on Earnings Management. The study shows that financial distress has a significant impact on earnings management for samples on the Jordanian listed companies during (2003-2016). The Cash Flow Statement provides information on the flow of cash in and out of the organization over a specific period. It shows how an organization spends its money (cash outflows) as well as the source of the money (cash inflows). The Cash Flow Statement – additionally alluded to as the statement of cash flows or fund flows, which is one of the financial statements that is often utilized in the measurement of an organization’s financial performance and overall wellbeing. The study also investigates the prevalence of both accrual and base earnings management for the empirical corporate finance which claims that the better corporate governance constraints between earnings management and the relation of high free-cash -flows firms the more will the increase will be at the income management and the earnings management. Although, the research has addressed the issues of earnings management and the real activities handling; this research paper put these two issues together. The analysis provides a mixed support when using different earnings management detection models. The findings of this study could serve as a guideline to a proper and understanding of earnings management to public listed companies, regulators, and various stakeholders
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Arbatskaya, Tatyana G. "Accounting and Analysis of Cash Flows of Penal Entities." Financial Journal 13, no. 1 (February 2021): 107–24. http://dx.doi.org/10.31107/2075-1990-2021-1-107-124.
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The global economic crisis, exacerbated by the pandemic of the new coronavirus infection, has led to a significant deterioration in the financial state of most economic entities. This problem has also affected public sector entities receiving budget financing. Even if a given public sector entity is engaged in entrepreneurial activity, with a decrease in sales cash flow decreases, whereas accounts receivable and payable increase. To carry out their statutory activities, state entities of the penitentiary system in the Russian Federation use not only budgetary funds, but also funds received from the sale of products manufactured by convicts. Therefore, the interest of users in the cash flows of penitentiary institutions is steadily increasing. The above strengthens the information and analytical functions of cash flow statements. Unlike other forms of reporting, the cash flow statement should report cash flows during the period classified by operating and investing activities (financing activity is not typical for penitentiary entities). In addition, the statement of cash flows provides useful information not only for controlling the use of budget funds, but also for current and forecast analysis. The article investigates the theoretical principles of accounting of cash flows of public sector entities of the penitentiary system of the Russian Federation. Results of the study include a proposal to improve the form of the cash flow statement by including an analytical feature — the source of financing activities. The study also presents and tests a methodology for analyzing cash flows in the context of funding sources.
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Калачева, Ольга, Olga Kalacheva, С. Смелова, and S. Smelova. "Convergence Problems of the Cash Flows Statement Preparation Methods Under the Russian and International Financial Reporting Standards." Auditor 4, no. 6 (July 3, 2018): 51–55. http://dx.doi.org/10.12737/article_5b309fadc46558.72369954.
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The problem of convergence of the disclosure order in accounting (financial) reporting of information on cash flows by Russian and international standards is disclosed in the article. The authors emphasize that the integration of the Russian Federation into the world community requires from Russian organizations the provision of fi nancial statements according IFRS. However, most Russian companies are legally required to provide both IFRS fi nancial statements and RAS financial statements. In this regard, the Cash Flow Statement, as one of the obligatory statement of companies, is represented in this article as a tool for eff ectively assessing the organization’s ability to attract and use cash in the economic life.
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Hodder, Leslie, Patrick E. Hopkins, and David A. Wood. "The Effects of Financial Statement and Informational Complexity on Analysts’ Cash Flow Forecasts." Accounting Review 83, no. 4 (July 1, 2008): 915–56. http://dx.doi.org/10.2308/accr.2008.83.4.915.
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ABSTRACT: We characterize the operating-activities section of the indirect-approach statement of cash flows as backward because it presents reconciling adjustments in a way that is opposite from the intuitively appealing, future-oriented, Conceptual Framework definitions of assets, liabilities, and the accruals process. We propose that the reversed-accruals orientation required in the currently mandated indirect-approach statement of cash flows is unnecessarily complex, causing information-processing problems that result in increased cash flow forecast error and dispersion. We also predict that the mixed pattern (i.e., +/−, −/+) of operating cash flows and operating accruals reported by most companies impedes investors’ ability to learn the time-series properties of cash flows and accruals. We conduct a carefully controlled experiment and find that (1) cash flow forecasts have lower forecast error and dispersion when the indirect-approach statement of cash flows starts with operating cash flows and adds changes in accruals to arrive at net income and (2) cash flow forecasts have lower forecast error and dispersion when the cash flows and accruals are of the same sign (i.e., +/+, −/−); with the sign-based difference attenuated in the forward-oriented statement of cash flows. We also conduct a quasi-experiment to test our mixed-sign versus same-sign hypotheses using archival samples of publicly available I/B/E/S and Value Line cash flow forecasts. We find that the passively observed samples of cash flow forecasts exhibit a similar pattern of mixed-sign versus same-sign forecast error as documented in our experiment.
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Broome, O. Whitfield. "Statement of Cash Flows: Time for Change!" Financial Analysts Journal 60, no. 2 (March 2004): 16–22. http://dx.doi.org/10.2469/faj.v60.n2.2605.
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Burckel, Daryl, Michael P. Watters, and Zoel W. Daughtrey. "Analyzing an agribusiness statement of cash flows." Agribusiness 7, no. 4 (July 1991): 389–400. http://dx.doi.org/10.1002/1520-6297(199107)7:4<389::aid-agr2720070407>3.0.co;2-v.
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Stevanović, Slavica, Jelena Minović, and Grozdana Marinković. "Earnings and cash flow persistence: Case of medium agriculture enterprises in Serbia." Ekonomika poljoprivrede 68, no. 1 (2021): 141–53. http://dx.doi.org/10.5937/ekopolj2101141s.
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This paper examines the earnings and cash flow persistence of selected agriculture Serbian enterprises as a measure of their earnings quality. We study the persistence of income statements and cash flow statement items of medium-sized agriculture enterprises in Serbia. Agriculture is a relevant sector for the national economy and medium-sized enterprises are the main drivers of her economic growth. We use panel regression analysis with annual data over the period from 2010 to 2018. The results of our research indicate that earnings and cash flow-based indicators have different persistence. Analysing accruals and net cash flows of operating activities as determinants of operating profit of analysed enterprises, we conclude that operating profit that represents accruals are more persistent than operating profit backed by net operating cash flows.
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Türkössy, Anikó. "The rules for the Cash Flow Statement in the International Financial Reporting Standard." Analecta Technica Szegedinensia 7, no. 1-2 (January 24, 2013): 71–73. http://dx.doi.org/10.14232/analecta.2013.1-2.71-73.
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Cash flow statement may provide considerable information about what is really happening in a business beyond that contained in either the income statement or the balance sheet. Analyzing this statement should not present an intimidating task; instead it will quickly become obvious that the benefits of understanding the sources and uses of a company’s cash far outweigh the costs of undertaking some very straightforward analyses. The objective of IAS 7 is to require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows, which classifies cash flows during the period according to operating, investing, and financing activities.
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Grippo, Frank J., John Ted Ibex, and Sia Nassiripour. "Cooper Machinery, Inc." Journal of Business Case Studies (JBCS) 1, no. 4 (October 1, 2005): 13–26. http://dx.doi.org/10.19030/jbcs.v1i4.4930.
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This case emphasizes one of the most important analytical tools that an accounting graduate should possess. It is the opinion of the authors that an accounting graduate should be able to convert from the accrual basis of accounting to the cash basis. A solid understanding of this area and others, such as time value of money concepts, is necessary in order for one to consider himself/herself accounting literate. The purpose of this case is to evaluate and help students understand the relationship between the balance sheet, statement of income, and statement of cash flows in addition to the theory and mechanics of converting from the accrual basis of accounting to the cash basis. Furthermore, it helps students develop analytical skills and form an opinion about the usefulness of the direct method presentation of the statement of cash flows compared to the indirect method. Thus students are forced to complete missing information on the balance sheet, statement of income, and statement of cash flow by deducing which transactions occurred. The assumption used in the case is that the company employs the accrual basis of accounting. There were no cash sales or expenses paid in cash.
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Atufah, Intan Devi. "PENERAPAN PSAK NO.45 TENTANG PELAPORAN KEUANGAN ORGANISASI NIRLABA YAYASAN PENDIDIKAN PONDOK PESANTREN AL-KHAIRIYAH." International Journal of Social Science and Business 2, no. 3 (December 6, 2018): 115. http://dx.doi.org/10.23887/ijssb.v2i3.16218.
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Now days non profit organizations in Indonesia still tend to emphasize the priority of program quality and not too much attention to the importance of financial management systems. Though a good financial management system is believed to be one of the main indicators of accountability and tranparency of an institution. Reporting and financial management of the corresponding set in the Statement of Financial Accounting Standards (SFAS) 45 of the financial reporting of nonprofit organizations. The purpose of this study was to determine whether application of the financial reporting on Educational Foundation Boarding School Al-Khairiyah with what has been stated in SFAS 45. Descriptive research methods with qualityve analysis techniques outlines, describe and recontruct a data. The result showed that the financial statement in accordance with the Educational Foundation Boarding School Al-Khairiyah yet financial statement based nonprofit financial statement formats that exist in SFAS 45. The financial statements of which there are some cash flow statements regarding expenditures and income to their understanding. Educational Foundation Boarding School Al-Khairiyah does not present a statement of financial position, statement of activities, statementof cash flows, and notes to the financial statements. The preparation of financial statement sshould be guided by Educational Foundation Boarding School Al-Khairiyah and follow the conditions set by the Indonesian Institute of Accountants (IAI) contained in SFAS 45 that the information presented in the financial statement be clear, relevant and has a high appeal
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Kamel Al Zobi, Mo’taz, and Othman Hel Al-Dhaimesh. "The impact of cash flow statement components on stock volatility: Evidence from Qatar." Investment Management and Financial Innovations 18, no. 2 (June 28, 2021): 365–73. http://dx.doi.org/10.21511/imfi.18(2).2021.29.
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The published financial statements are considered one of the most important sources of information that investors rely on in forecasting stock performance or even judging the organization’s ability to cover short-run liabilities. Cash flows play a core role in maintaining a high market value for its shares. Hence, this study came to analyze the explanatory value of the cash flow statement in explaining stock volatility (SV) in the Qatar financial market. Study data were collected using published financial statements from a sample of 44 Qatari-listed companies throughout 2013–2019. A panel cross-sectional data technique using the E-views program was used to analyze the data. The study results show there is a positive and significant impact of cash flows from operating CFO activities on SV, indicating that the higher change in CFO increases stock volatility. This means that operating cash flows give significant information to investors, and it is reflected in the stock price movements directly. Also, the cash flow from CFF financing activities has a positive and significant effect on SV. This means that CFF affects stock prices, causing greater changes and fluctuation in stock returns. This is because one of the major components of CFF is dividends, which affect directly stock prices and stock returns. In contrast, there is an insignificant effect of CFI on SV, which may indicate that investors do not build their investment decisions based on CFI. Accordingly, the cash flow from investing activities failed to explain the stock volatility of the listed Qatari companies.
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Ntoung Agbor Tabot, Lious, Huarte Galván Cecilio, and Felix Puime Guillén. "Operating cash flow and earnings under IFRS/GAAP: evidence from Australia, France & UK." Corporate Ownership and Control 13, no. 1 (2015): 1346–58. http://dx.doi.org/10.22495/cocv13i1c11p7.
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The purpose of this paper is to investigate the difference in the value relevance of operating cash flow and earnings in stock price before and after the mandatory IFRS adoption. The study basically uses Feltham and Ohlson (1995), Joos (1997) and other related studies valuation model. Using a sample of firms from 3 IFRS countries from 2003 to 2012, we find that operating cash flows seem to be more value relevance than earnings within and across country border after a switch to IFRS in Australia and the UK, and earnings seem to be more value relevance than operating cash flows in France. Additionally, Operating cash flow and earnings convey incremental explanatory power to explain share prices in Australia, France and the UK. After a switch to IFRS in 2005, our study shows that the difference in account number (operating cash flows and earnings) reduces across country border but increases within country when both the IFRS and local accounting standards are used. Taken together, our findings suggests that after a swift to the mandatory IFRS adoption, even though income statement and the statement of cash flow are very vital for strategic decisions, investors in Australia and UK are more likely to pay more value relevance to the statement of cash flow than income statement whereas in France, income state is more required than statement of cash flow.
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McGowan, Carl B., N. M. Baki Billah, and Noor Azuddin Yakob. "Liquidity Analysis of Selected Public-Listed Companies in Malaysia." Issues in Economics and Business 1, no. 1 (June 23, 2015): 1. http://dx.doi.org/10.5296/ieb.v1i1.7508.
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<p>The Statement of Cash Flows is a crucial part of financial reporting. Thus, cash flow ratios have drawn the attention of practitioners and academic researchers to use to evaluate the performance of a company. This study examines, over the three years (2010-2012) period, the liquidity position of selected companies from three prominent sectors (Consumer products, Industrial products and Trading/Services) of the Malaysian economy using cash flow statement ratios and traditional liquidity ratios suggested by various researchers. Traditional ratios were obtained from the Osiris database and cash flow ratios were calculated by using financial statements of selected companies. Traditional ratios examined were - current ratio, quick ratio, total asset to total liabilities ratio, and interest coverage ratio. Similarly, cash flow ratios examined were–operating cash flow ratio, critical needs cash coverage ratio, cash flow to total debt ratio, and cash interest coverage ratio. Correlation analysis was performed to investigate the strength of the relationship between traditional ratios and cash flow ratios. The empirical results of the correlation analysis show a statistically significant positive relationship between traditional ratios and cash flow ratios. Finally, pair t-tests results show that there is statistically significant difference between traditional ratios and cash flow ratios. The implication of the above empirical results suggests that traditional liquidity ratios should not be used solely for measuring liquidity since a company can have serious cash flow problems with positive liquidity ratios and increasing profits. Liquidity ratios developed using the statement of cash flows provide additional information or sometimes better insight on the financial strength or weakness of a company.</p>
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Hardiyanto, Arief Tri, and Stefan Michael Benyamin Bertus. "ANALISIS KINERJA PERUSAHAAN BERDASARKAN LAPORAN ARUS KAS PADA PT INDOMOBIL SUKSES INTERNASIONAL TBK." JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi) 1, no. 2 (July 1, 2015): 63–76. http://dx.doi.org/10.34204/jiafe.v1i2.518.
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This research discusses the role of the analysis of the cash flow statement as supporting the evaluation of company performance based on cash flow ratio, so that it can be seen in the company's ability to manage cash, either in operating activities, investing activities, and financing activities. The analysis is expected to be useful as a supporting device in the decision making process for users of financial statements for both internal and external parties. Based on the analysis of the cash flow pattern, it can be seen operating activities resulted in net cash the company is negative. Thus the financial condition of PT Indomobil Sukses Internasional Tbk is not good. Cash flows from investing activities yielded negative results, thus the financial condition of PT Indomobil Sukses Internasional Tbk is both a financing cash flow generating net amount of cash flow that is positive. The third explanation pattern of cash flow, it can be concluded that the financial condition of PT Indomobil Sukses Internasional Tbk generally in poor condition. Then, based on the analysis of the cash flow statement, author obtained information that the company has liquidity and solvency levels that are less good. The capital structure of the company has not been sufficiently effective and efficient.Keywords: Analysis of Cash Flow Statement
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Schmidgall, R. "Financial analysis using the statement of cash flows." Cornell Hotel and Restaurant Administration Quarterly 34, no. 1 (February 1993): 47–53. http://dx.doi.org/10.1016/0010-8804(93)90030-m.
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Schmidgall, Raymond S., A. Neal Geller, and Charles Ilvento. "Financial Analysis Using the Statement of Cash Flows." Cornell Hotel and Restaurant Administration Quarterly 34, no. 1 (February 1993): 46–53. http://dx.doi.org/10.1177/001088049303400109.
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Munter, Paul. "New Guidance on Statement of Cash Flows Questions." Journal of Corporate Accounting & Finance 28, no. 3 (February 22, 2017): 84–89. http://dx.doi.org/10.1002/jcaf.22257.
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Nurnberg, Hugo. "Minority Interest in the Consolidated Retained Earnings Statement." Accounting Horizons 15, no. 2 (June 1, 2001): 119–46. http://dx.doi.org/10.2308/acch.2001.15.2.119.
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Consolidated financial statements purport to report income, financial position, and cash flows of a parent company and its subsidiaries as if the group were a single company with one or more branches or divisions. Under the parent company theory, the consolidated entity perspective assumed in the consolidated income statement, the consolidated balance sheet, and the consolidated retained earnings statement differs from the consolidated entity perspective assumed in the consolidated cash flow statement. Even under extant expositions of the entity theory, the consolidated entity perspective assumed in the consolidated income statement, the consolidated balance sheet, and the consolidated cash flow statement differs from the consolidated entity perspective assumed in the consolidated retained earnings statement. This paper develops a consistent consolidated entity perspective for all four consolidated financial statements. It demonstrates that under the entity theory, consolidated retained earnings includes the separate equities of both the parent company stockholders and the minority interest. As such, both elements of retained earnings should be reported in the consolidated retained earnings statement to make it comparable to the consolidated retained earnings statement of companies without subsidiaries or with only wholly owned subsidiaries. The effect on certain financial ratios of public companies may be substantial. The paper also demonstrates that for purchased subsidiaries, minority interest in consolidated retained earnings includes unamortized write-ups of identifiable net assets and goodwill arising from purchase-type business combinations.
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Ferry, Ferry, and Erny Ekawati. "PENGARUH INFORMASI LABA AKUNTANSI, ALIRAN KAS DAN KOMPONEN ALIRAN KAS TERHADAP HARGA SAHAM PADA PERUSAHAAN MANUFAKTUR DI INDONESIA." Jurnal Riset Akuntansi dan Keuangan 1, no. 2 (August 1, 2005): 79. http://dx.doi.org/10.21460/jrak.2005.12.114.
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Brfoo 1994, the one way measurcd pdormance of go public compa4y is earning afier tu, but on September 7, 1994 the Indonesian Institute olAccountants (IAI) published the statement of financial Accounting Standard (PSAK) No.2, "statement of Cash Flows" requires companiesto pubtish the statewent of cash flows beginning from January I, tggs. So investors had two kinds measurement of performance go public companies.The objective of study is to aplain the influence of informationcontent of accounting income, total cash Jlows, and components of cash flow with stock price in lidonesian manufacuring firms The accounting income is earning afiir ta,tc before extra ordinary item and discontinued operations and total cash flows is a sum of cash flow from operating activities, cash llow from investing activities, and cash tlow from financing activities.This study was constitute replicated study from Triyono and Yogiyanto (2000) about the association of information content of total cash flows, components of cash Jlows, and accoun:ting income with stock prices or stock returns. This study took sample frorn manufacnring firms lisfed in the Jakarta Stock Exciange @ni) from 1999-iOOZ tnoT"had pubtished aadited financial statement. Stock prices using monthly prices that hadended December 1999-2002. The statistics method used to test ltypotheses is a linier multiple regression. The model was considered: levek')odet. The empirical results with using the first model levels about the influ. hence information of accounting income and total cash flows with stock prices can be explained accounting income gave positive influence and significant with stock prices whereas total cash flows gcMe negative and tlgnil*nt with stock prices. In the second model levels about the influ- ,i"i ,nyn *ation of cash flow from operating actiu.ities, cash flow from investing activities, and cash flow from financing octivities with stock pri, i* b" explained, separated total gash fl9ws into.yomponents. of 'cash flows gave negative influence and significant with stock prices "rp"ifolly iash ltoi from aperating octivities and c-ash flow from finincing activities. In the third model levels obout influence information of acciunting income and components of cash Jlows with stock prices irn be expliined, accounting income gave positive inlluence and significont with stock prices whereas companents of cosh tlows gNe negative influence and significant with stock prices'Keywords : accounting Income, cash Flows, components of cashflows, levels model
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Purnamawati, I. Gusti Ayu, and Gede Adi Yuniarta. "Pelatihan dan Pendampingan Penyusunan Laporan Arus Kas untuk Pengelola Koperasi di Kecamatan Buleleng." Proceeding of Community Development 1 (April 4, 2018): 189. http://dx.doi.org/10.30874/comdev.2017.25.
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The objectives of the training and advisory activities are to: (1) Provide insight into the importance of cash flow statements to evaluate the financial condition of the cooperative; (2) Provide training on how to create a cash flow statement, so that the cooperative managers can create a cash flow statement in each cooperative. The form of this community service program is the programmed training and assistance in the preparation of the cash flow statement, which previously presented to the participants about cash flow and the importance of the cash flow statement to evaluate the financial condition of the cooperative. Training and assistance in the preparation of cash flow statements will bring in competent personnel in the field. After the participants understood about how to arrange cash flow, the training and mentoring activities will be continued by making cash flow statement in each cooperative until the cash flow statement is generated, in the end it is expected that the manager of the cooperative can make their own cash flow statement in the cooperative . The results showed that: 90% of cooperative managers have been able to create cash flow statements used to determine the condition of cash cooperative either from operating activities, investment, and funding, because most of the cooperative assets derived from the existing cash.
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Nanggala, Ardhya Yudistira Adi. "Free Cash Flows, Management Ownership, Dividend Policy, and Debt Policy." Jurnal Ekonomi Akuntansi dan Manajemen 19, no. 1 (April 29, 2020): 30. http://dx.doi.org/10.19184/jeam.v19i1.17544.
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This study aims to identify and examine empirically effect of free cash flows, managerial ownership and dividend policy on debt policy (empirical study on companies listed on Stock Exchange). This study uses secondary data in form of financial statements derived from annual financial statements of companies listed on Stock Exchange and available reporting consecutive years from 2012 to 2017. Samples were taken by purposive sampling with first criteria company's annual financial statement data available for consecutive reporting years from 2012 to 2017. Number of samples in this study 132 firm years. Data analysis methods used in this study is multiple linear regression analysis. Results showed that: free cash flows and managerial ownership has a significant positive effect on debt policy. Dividend policy have a significant negative effect on debt policy.
Keywords: Free cash Flows, Management Ownership Dividend Policy, Debt Policy
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Łazarowicz, Edyta. "The comparability of IFRS statements of cash flows in Poland. The influence of national regulations." Zeszyty Teoretyczne Rachunkowości 2019, no. 101 (157) (March 25, 2019): 149–66. http://dx.doi.org/10.5604/01.3001.0013.0760.
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This paper analyses the comparability of the structure and content of IFRS consolidated statements of cash flows within Polish listed companies and the influence of national accounting rules on these statements. Two research methods have been used: a literature review and an analysis of the content of financial statements. It has been found that there are small differences in the structure and content of IFRS consolidated statements of cash flows in Poland. The results indicate that the options in IAS 7 and the lack of an obligatory format of the IFRS statement of cash flows do not significantly reduce the comparability of these statements in Polish practice. Moreover, it has been observed that Polish listed companies follow national regulations only in some aspects for which IAS 7 provides options or has no regulations at all. The findings of this study may be relevant for standard setters, in particular, the current IASB Primary Financial Statements project, for users of financial reporting, and for academics for future research.
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Dmitrieva, I., and Yu Kharakoz. "Cash Flow Statement in Russian and International Practice." Auditor 6, no. 9 (September 24, 2020): 35–41. http://dx.doi.org/10.12737/1998-0701-2020-35-41.
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Th e article discusses the world practice of applying accounting standards for the formation of a cash flow statement. In particular, the requirements for providing information on cash flows in national accounting systems were studied: generally accepted accounting principles of the United States, international financial reporting standards and Russian standards.
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Lightstone, Karen, Karrilyn Wilcox, and Louis Beaubien. "Misclassifying cash flows from operations: intentional or not?" International Journal of Accounting and Information Management 22, no. 1 (February 25, 2014): 18–32. http://dx.doi.org/10.1108/ijaim-07-2012-0039.
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Purpose – The purpose of this paper is to investigate the accuracy and informational quality of the cash from operations section of the cash flow statement. Design/methodology/approach – This paper empirically tested the accuracy of the cash from operations reported by Canadian non-financial companies. The authors studied 262 companies at three different time periods providing 786 firm observations. For each observation, the balance sheet was used to confirm the figures reported in the statement of cash flows. In addition, the authors investigated management's disclosure of the particular working capital items. Findings – The findings suggest that in recent years, companies are more likely to overstate their cash flow from operations, thereby presenting a better financial picture than is supported by the balance sheet accounts. This would suggest that the investing or financing section would be correspondingly understated. The presence of acquisitions reduces overstatements, which may be the result of more auditor presence. Research limitations/implications – This paper extends previous research from documented single, isolated instances of cash from operations being misstated to include a significant sample with more generalizable findings. The data are Canadian which may limit the generalizability to other countries. Future research should address the extent to which financial analysts rely on the reported cash from operations figure. Practical implications – This preliminary study may have implications for financial analysts and others relying on the free cash flow figure. Originality/value – This study expands on previous research which has taken place only on a case-by-case basis.
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An Interested Reader. "Statement of Cash Flows: Time for Change!: A Comment." Financial Analysts Journal 60, no. 5 (September 2004): 12. http://dx.doi.org/10.2469/faj.v60.n5.2650.
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Broome, O. Whitfield. "Statement of Cash Flows: Time for Change!: Author's Response." Financial Analysts Journal 60, no. 5 (September 2004): 12. http://dx.doi.org/10.2469/faj.v60.n5.2651.
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Cecil, H. Wayne, Teresa T. King, and Christine P. Andrews. "Back To Basics: Teaching The Statement Of Cash Flows." American Journal of Business Education (AJBE) 4, no. 2 (May 2, 2011): 41–46. http://dx.doi.org/10.19030/ajbe.v4i2.3561.
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Figlewicz, Raymond E., and Thomas L. Zeller. "Ratios from Statement of Cash Flows Complement Traditional Analysis." Financial Management 17, no. 4 (1988): 9. http://dx.doi.org/10.2307/3665759.
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Bailey, Wendy J., and Janet A. Samuels. "Analyzing Two Investments—An Instructional Case to Introduce Basic Financial Accounting Concepts." Issues in Accounting Education 33, no. 4 (September 1, 2018): 47–56. http://dx.doi.org/10.2308/iace-52254.
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ABSTRACT This case introduces basic financial accounting concepts to graduate business students in an accounting orientation session (i.e., “boot camp”). Students assume they have invested in two cupcake businesses in Paris and they now want to determine which business performed best. Instructors can use this case, which provides students an opportunity to compare two businesses, to achieve several learning objectives including those related to accrual accounting (i.e., when to record transactions), the legal aspects of business (i.e., company structure, stock ownership, international accounting), and the use of estimates in financial reporting (i.e., depreciation, bad debts). This case also introduces students to the three basic financial statements (i.e., balance sheet, income statement, statement of cash flows), and the evaluation of financial results (i.e., net income versus cash flow, ratios). We have found that this simple, straightforward case helps students feel more confident when working with basic financial accounting concepts.
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Ward, Terry J. "Is The Scaling Measure Used For Cash Flows Important In Predicting Financially Distressed Firms?" Journal of Applied Business Research (JABR) 9, no. 4 (September 27, 2011): 134. http://dx.doi.org/10.19030/jabr.v9i4.6004.
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This paper attempts to determine whether the measure used to scale the three net cash flows reported on a statement of cash flows affects binary financial distress prediction results. The results of this study suggest that the scaling measure used does affect the incremental predictive ability of each cash flow. Results indicate that tone should scale cash flow from operating activities by current assets, cash flow from investing activities by sales, and cash flow from operating activities by owners equity.
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Shimko, O. V. "Analyzing the figures of consolidated statement of cash flows of the world's biggest publicly traded oil and gas corporations." Economic Analysis: Theory and Practice 19, no. 6 (June 29, 2020): 1101–20. http://dx.doi.org/10.24891/ea.19.6.1101.
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Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.
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Fawzi Shubita, Mohammad. "Predictive value of accruals and the moderating role of company size: Empirical evidence from Jordan." Investment Management and Financial Innovations 18, no. 3 (August 19, 2021): 142–50. http://dx.doi.org/10.21511/imfi.18(3).2021.13.
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The cash flow statement aids the management to ascertain the profitability and liquidity position of a company. One can understand from the cash flow statement how efficiently the company is paying its obligation in various forms of liability and expense. This study aimed to explore the ability of short-term accounting accruals to predict cash flows. The sample included 77 Jordanian companies listed between 2006–2019. Cash flows were measured by net operating cash flows, and short-term accounting accruals were expressed as: change in account receivable, change in accounts payable, change in inventories, and other accruals. The results demonstrated the ability of short-term accounting accruals to predict future cash flows. The relationship between future cash flows and the short-term accounting accruals was significant, except for its relationship to the change in accounts payable. However, the findings indicate that the size of the company has not moderated the relationship between accounting accruals and operating cash flow. The study recommends using other accounting items besides short-term accounting accruals, to improve their ability to predict future cash flows and use of control variables that can increase the predictive power of the study model, such as financial leverage and company size. AcknowledgmentsI would like to thank Amman Arab University for its great support, and for funding this study.
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Harahap, Baru, and Syahril Effendi. "PENGARUH ARUS KAS OPERASI, ARUS KAS INVESTASI, DAN ARUS KAS PENDANAAN TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI PERIODE 2014-2019." JURNAL AKUNTANSI BARELANG 5, no. 1 (December 9, 2020): 1. http://dx.doi.org/10.33884/jab.v5i1.2647.
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This study aims to determine the effect of cash flows from operating, investing, and financing to saham Return. Data obtained from the income statement, cash flow statement, as well as saham market prices daily on Textile companies listed on the Saham Exchange 2014-2019. The analytical tool used is multiple linear regression, F test and t test. The samples are 15 companies Textile sector during the period 2014-2019. Based on the survey results revealed that a significant difference between cash flows from operating, investing, and financing on saham Returns with sig <0.05. T test results of each independent variable cash flows from operating, investing, and financing an effect on saham Returns (Returns) with sig < 0.05. The conclusion that can be drawn is that the investors who want to invest their shares in the company on the Indonesian Saham Exchange should pay attention to the ratio of a company's cash investment object, because of the results showed that the cash flow effect on saham Returns
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Risa Ratna Gumilang. "Analisis Arus Kas (Studi Empiris Pada PT. Indosat Tbk)." Coopetition : Jurnal Ilmiah Manajemen 11, no. 3 (November 1, 2020): 237–52. http://dx.doi.org/10.32670/coopetition.v11i3.155.
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The cash flow statement is a report that shows the flow of cash or cash that is in the company. The cash statement consists of cash inflows such as proceeds from receipts or sales and cash outflows which consist of expenses such as payment of expenses and expenses. The purpose of this study was to determine the ability of PT. Indosat Tbk. in managing cash flow, especially in determining the projected investment made, based on the cash flow conditions of PT. Indosat Tbk in the period 2016-2018. The results of this study indicate that the comparative analysis of cash flow statements on total cash and cash equivalents, cash flow at the end of the period during the 2016-2018 period shows a percentage of -48.93%, 4.10%, -45.75%, for three consecutive years, and on Trend analysis is at PT. Indosat Tbk. shows the percentage figures of 51.07%, 104.10%, 54.25% for three consecutive years in the 2016-2018 period. Per component analysis shows that cash inflows and outflows are dominated by cash flows from operating activities with a tendency that cash inflows decrease while cash outflows increase. In a special cash flow ratio analysis shows that the cash flow adequacy ratio of PT. Indosat Tbk, shows a figure of 1.57 and a reinvestment ratio which shows a ratio of 25.65% which means that PT. Indosat Tbk is quite good at meeting the company's cash needs.
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Beaulieu, Philip. "Voluntary Income Reporting." Accounting Horizons 28, no. 2 (February 1, 2014): 277–95. http://dx.doi.org/10.2308/acch-50727.
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SYNOPSIS This paper proposes a voluntary income-reporting regime, in which firms could choose whether to publish an income statement. Firms choosing not to issue it would report fund flows in a cash flow statement employing the direct method, similar to the cash flow statement advocated by Ohlson et al. (2010). Voluntary income reporting is motivated by managers' numerous motives to manipulate earnings, recent research challenging the value relevance of earnings compared to cash flows, and costs of auditing income, including litigation risk. Another motivation for voluntary income reporting is rising investor dissatisfaction with reported earnings, but unlike many critics in the investing community, the paper does not claim that earnings do not have significant information value. Rather, given recent developments, it is worth reconsidering whether the benefits of reporting accrual earnings exceed the costs for all firms.
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Indawatika, Feri. "Penyusunan Laporan Keuangan Berbasis SAK ETAP Koperasi Intako Dan Respon Pihak Eksternal." Journal of Accounting Science 1, no. 1 (May 31, 2017): 38. http://dx.doi.org/10.21070/jas.v1i1.788.
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This study aims to perform the preparation of financial statements in Cooperative INTAKO based SAK ETAP responses and identify external parties regarding the preparation of the financial statements based SAK ETAP. This type of research is qualitative. Data collection techniques with interviews, documentation, and triangulation. Test the validity of the data by using the test of credibility, transferability, and dependability. Engineering analysis using the data collection phase, data reduction, the data display, and conclusion. The results showed that the Cooperative INTAKO only prepare three financial statements, namely: Balance Sheet, Income Statement, and Notes to the Financial Statements and the report asled to the SAK ETAP, but there are a few post that are not yet in accordance with SAK ETAP. So the report prepared by the researchers is the Balance Sheet, Income Statement, Statement of Changes in Equity, Cash Flow Statement and Notes to Financial Statements. Supervisors Cooperative INTAKO response regarding the preparation of the financial statements based SAK ETAP is less familiar with the statement of changes inequityand cash flows. Response Diskoperindag and EMR Sidoarjo financial statements based on SAK ETAP is the format and types of financial statements that are prepared can be adjusted to the needs of the cooperative while it is in accordance with thelawon cooperatives and applicable accounting standards. Cooperative Response Putra Buana Waru financial statements based on SAK ETAP is too complicated if the cooperative must prepare complete financial statements for cooperatives prepare financial reports as needed and cooperative laws still give leeway regarding the preparation of the financial statements of the cooperative.
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Hewitt, Max. "Improving Investors' Forecast Accuracy when Operating Cash Flows and Accruals Are Differentially Persistent." Accounting Review 84, no. 6 (November 1, 2009): 1913–31. http://dx.doi.org/10.2308/accr.2009.84.6.1913.
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ABSTRACT: This study uses an experiment to examine (1) what factors give rise to investors' inability to fully incorporate operating cash flows and accruals into their earnings forecasts, and (2) what conditions help to improve investors' forecast accuracy when operating cash flows and accruals exhibit differential persistence. I investigate how decomposing the forecasting task and altering the presentation format combine to enable analysts and nonprofessional investors to acquire and accurately process financial statement information when operating cash flows and accruals are differentially persistent. I find that the earnings forecasts of analysts and M.B.A. students are more accurate only when participants are required to provide separate forecasts for operating cash flows and accruals and the income statement is altered to present the disaggregated cash and accrual components of earnings.
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Janjani, Reza. "Comparing US-GAAP and Iran-GAAP operating cash flows to predict future cash flows." Journal of Financial Reporting and Accounting 13, no. 1 (July 6, 2015): 39–65. http://dx.doi.org/10.1108/jfra-06-2013-0047.
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Purpose – The main objective of this paper is to compare the ability of US-generally accepted accounting principles (GAAP) operating cash flows versus Iran-GAAP operating cash flows in predicting future cash flows. Design/methodology/approach – The sample comprises 240 firms (1,200 firm-years) during the period from 2004 to 2008 for which operating cash flows and other variables are available. Cross-sectional and panel data regression models are used in testing the hypotheses. Findings – This study finds that operating cash flows based on Iran-GAAP are no more effective in predicting future cash flows than those based on USA-GAAP, and the predictive ability of the model is improved by adding the earnings accrual components to the operating cash flows. Originality/value – The study suggests that the Iranian accounting standard setting committee recommends that the statement of cash flows be prepared based on the three-category model instead of the five-category model in an attempt to converge with the International Financial Reporting Standards. Consistent with Financial Accounting Standards Board and financial analyst recommendations, the results reveal that earnings are a better predictor than cash flows from operations.
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Shi, Linna, and Huai Zhang. "On Alternative Measures of Accruals." Accounting Horizons 25, no. 4 (December 1, 2011): 811–36. http://dx.doi.org/10.2308/acch-50050.
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SYNOPSIS This paper investigates the difference between two widely used measures of accruals and their differential impact on accrual strategy returns. The two measures are accruals computed using consecutive changes in the balance sheet items and accruals computed as earnings minus cash flows from operating activities, both from the cash flow statement. Our investigations reveal that the difference between the two measures is caused by four items and non-articulations in changes in working capital accounts and depreciation expenses, in addition to non-articulation events as identified by Hribar and Collins (2002). We find that the non-articulation in working capital accounts and depreciation expenses between the cash flow statement and other financial statements is surprisingly prevalent and economically significant, and it can be attributed to special events, errors made by Compustat, firms' inconsistent definitions, and non-standard classifications of assets/liabilities. We show that, after excluding non-articulation events, the accrual strategy returns are higher for accruals computed using balance sheet items than accruals computed using cash flow statement items. Further investigations suggest that the return differentials are mainly due to other funds from operations and the non-articulation in changes in accounts receivable. JEL Classifications: G12; G14; M41. Data Availability: Data used are available from the sources identified in the study.
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Abualrob, Laith Abdel Rahman, and Sanaa N. Maswadeh. "The Effect of Financial Ratios Derived From Operating Cash Flows on Jordanian Commercial Banks Earnings per Share." International Journal of Financial Research 11, no. 1 (October 10, 2019): 394. http://dx.doi.org/10.5430/ijfr.v11n1p394.
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This study tries to investigate the effect of operating cash flows ratios, which are (operating cash flows attributed to net income, operating cash flows attributed to credit facilities, and operating cash flows attributed to deposits) on earnings per share. The study was applied on Jordanian commercial banks listed on the Amman Stock Exchange during the period (2013-2017), and multiple regression analysis was used to test the study hypotheses.The most important results revealed by the study were: the ratio of operating cash flows attributed to credit facilities is considered as the most important ratio derived from the cash flow statement helping in determining the earnings per share in Jordanian commercial banks. And there is a statistically significant effect of operating cash flows attributed to net income, operating cash flows attributed to credit facilities, and operating cash flows attributed to deposit on earnings per share in Jordanian commercial banks.
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Donelan, Joseph G. "An Integrated Approach to Teaching the Statement of Cash Flows." Journal of Education for Business 68, no. 4 (April 1993): 234–36. http://dx.doi.org/10.1080/08832323.1993.10117620.
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Christopher, Theo, and Salleh Hassan. "Usefulness of Statement of Cash Flows: Evidence from Malaysian Analysts." Asian Review of Accounting 7, no. 2 (February 1999): 84–95. http://dx.doi.org/10.1108/eb060715.
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