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Statement of Cash Flows: Preparation, Presentation, and Use
book

Statement of Cash Flows: Preparation, Presentation, and Use

by Tom Klammer
April 2018
Intermediate to advanced content levelIntermediate to advanced
288 pages
5h 27m
English
Wiley
Content preview from Statement of Cash Flows: Preparation, Presentation, and Use

Chapter 3 PRESENTATION ISSUES: INVESTING, FINANCING, AND NONCASH ACTIVITIES

Business activities can be complex and take many forms. Exactly how and where to present cash flow information related to these activities remains controversial. This chapter focuses on two preparation and presentation issues that remain troublesome. These two are statement classification and noncash activities. Particular emphasis is given to the presentation of investing, financing, and noncash transactions under current reporting requirements. Operating section presentations and disclosures are considered in detail within this chapter.

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

     Identify cash flow transactions as operating, investing, or financing.

     Recall situations which might result in alternative methods of presentation on the statement of cash flows.

     Indicate how to present and disclose significant transactions that have no direct cash flow effect.

     Identify problems that may be caused by the separation of cash and noncash transactions.

Significant classification changes are anticipated if a revised financial statement presentation document from FASB and International Accounting Standards Board (IASB) is completed. Separate tax and discontinued operations segments are probably going to be required. What is included in the financing section may be modified while a restructured investing section is likely to be combined ...

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Publisher Resources

ISBN: 9781119508984Purchase book