Statement of Cash Flows

Business & Finance, Accounting
Cover of the book Statement of Cash Flows by Dirk Maßing, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Dirk Maßing ISBN: 9783638168427
Publisher: GRIN Publishing Publication: January 31, 2003
Imprint: GRIN Publishing Language: English
Author: Dirk Maßing
ISBN: 9783638168427
Publisher: GRIN Publishing
Publication: January 31, 2003
Imprint: GRIN Publishing
Language: English

Seminar paper from the year 2002 in the subject Business economics - Accounting and Taxes, grade: 2.0 (B), Technical University of Braunschweig (Institute for Economics), course: International Accounting, 13 entries in the bibliography, language: English, abstract: This seminar paper will give an introduction to the statement of cash flows which is required as part of the financial statements of the US-GAAP. The statement facilitates the analysis of the liquidity, solvency, and financial flexibility of the firm. In german law a statement of cash flows was first introduced in 1998 by the KonTraG 1.2 In accordance with this law (resp. additions to existent law) german companies must publish such a statement when they are listed at the stock market.3 The mission and content of the statement in german law is not defined in German Commercial Code (HGB) but provided by the German Accounting Standards Committee (GASC) with German Accounting Standards No. 2 (GAS 2). It is drawn near IAS 7 of the International Accounting Standards and Statement of Financial Accounting Standards (SFAS) No. 95 of US-GAAP. The Security and Exchange Commission (SEC) sees cash flow statements of IAS 7 and SFAS No. 95 equally and excepts both.4 Because there are not many dierences between SFAS No. 95 and IAS 7 this paper just focuses on the US-GAAP.5 The statement of cash flows is structured in three sections. To set up the first section - called operating activities - you can choose either a direct or and indirect method. Both methods show the same investing and financing cash flows, and both show the reconciliation of net income and net operating cash flows. The main difference is that only the direct method shows the actual operating cash flows such as collections from customers and payments to suppliers. The indirect method uses the reconciliation as its operating activities section, that is why it is also called reconciliation method. When describing the content or giving examples of the statement the indirect method is used always in this paper. In spite of the fact that after SFAS No. 95 the Financial Accounting Standards Board (FASB) is preferring the direct method most companies are using the indirect method. This is because in most cases companies do not store all relevant data in their information system to use the direct method. In the other two sections - investing and financing activities - the direct method must be used.6 In the second part this work will give an overview and is showing details of form and content of the statement of cash flows according to the SFAS No 95, as well as it is presenting information about how to prepare the statement [...]

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2002 in the subject Business economics - Accounting and Taxes, grade: 2.0 (B), Technical University of Braunschweig (Institute for Economics), course: International Accounting, 13 entries in the bibliography, language: English, abstract: This seminar paper will give an introduction to the statement of cash flows which is required as part of the financial statements of the US-GAAP. The statement facilitates the analysis of the liquidity, solvency, and financial flexibility of the firm. In german law a statement of cash flows was first introduced in 1998 by the KonTraG 1.2 In accordance with this law (resp. additions to existent law) german companies must publish such a statement when they are listed at the stock market.3 The mission and content of the statement in german law is not defined in German Commercial Code (HGB) but provided by the German Accounting Standards Committee (GASC) with German Accounting Standards No. 2 (GAS 2). It is drawn near IAS 7 of the International Accounting Standards and Statement of Financial Accounting Standards (SFAS) No. 95 of US-GAAP. The Security and Exchange Commission (SEC) sees cash flow statements of IAS 7 and SFAS No. 95 equally and excepts both.4 Because there are not many dierences between SFAS No. 95 and IAS 7 this paper just focuses on the US-GAAP.5 The statement of cash flows is structured in three sections. To set up the first section - called operating activities - you can choose either a direct or and indirect method. Both methods show the same investing and financing cash flows, and both show the reconciliation of net income and net operating cash flows. The main difference is that only the direct method shows the actual operating cash flows such as collections from customers and payments to suppliers. The indirect method uses the reconciliation as its operating activities section, that is why it is also called reconciliation method. When describing the content or giving examples of the statement the indirect method is used always in this paper. In spite of the fact that after SFAS No. 95 the Financial Accounting Standards Board (FASB) is preferring the direct method most companies are using the indirect method. This is because in most cases companies do not store all relevant data in their information system to use the direct method. In the other two sections - investing and financing activities - the direct method must be used.6 In the second part this work will give an overview and is showing details of form and content of the statement of cash flows according to the SFAS No 95, as well as it is presenting information about how to prepare the statement [...]

More books from GRIN Publishing

Cover of the book Leadership from a Scientific and Practical Perspective by Dirk Maßing
Cover of the book To what extent is the tragedy of the commons restricting option when dealing with a global ecological crisis? by Dirk Maßing
Cover of the book Implementation of Variable Frequency Drives (VFD) on Boiler Feed Water Pumps for Drum Level Control by Dirk Maßing
Cover of the book Indian English as an ESL-variety: common core and interference by Dirk Maßing
Cover of the book Forgiveness - A review on a new trend of psychological and medical research under theological aspects by Dirk Maßing
Cover of the book Töten im Krieg by Dirk Maßing
Cover of the book Budgeting: Approaches and shortcomings by Dirk Maßing
Cover of the book Atomization overcome? The case of the European blogosphere in Fostering more European Democracy by Dirk Maßing
Cover of the book Ad-hoc disclosure - A law and economics approach by Dirk Maßing
Cover of the book Discussion of Lunds vision of an emerging norm of prevention in the context of the unfolding crisis in Zimbabwe by Dirk Maßing
Cover of the book Intercultural differences of customer emotions in service encounters by Dirk Maßing
Cover of the book Joint Ventures: The benefits and perils - why some are successful and others fail by Dirk Maßing
Cover of the book Entwicklung der Filmwirtschaft und Filmproduktion in Deutschland während der NS-Zeit by Dirk Maßing
Cover of the book Identifying highly talented athletes: Conception and design of an expert system by Dirk Maßing
Cover of the book Begayal - Alienation of Affections in James Baldwin's Giovanni's Room and Stewart O'Nan's Everyday People by Dirk Maßing
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy